Unfortunately that a Barnt Green residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Barnt Green property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher amount will be payable. Most leasehold owners in Barnt Green will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Barnt Green with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancers that we work with undertake Barnt Green lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of lengthy discussions with the landlord of her basement apartment in Barnt Green, Ellen initiated the lease extension process just as the lease was coming close to the critical eighty-year threshold. The legal work completed in March 2007. The landlord’s costs were kept to an absolute minimum.
Mr Theo Flores moved into a one bedroom apartment in Barnt Green in August 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparative flats in Barnt Green with an extended lease were worth £218,400. The mid-range amount of ground rent was £60 collected annually. The lease terminated in 2084. Considering the 59 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 plus expenses.
Last Winter we were approach by Mr and Mrs. U Sharif , who moved into a garden flat in Barnt Green in February 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparative premises in Barnt Green with an extended lease were in the region of £205,000. The average amount of ground rent was £50 collected annually. The lease came to a finish on 24 June 2104. Given that there were 79 years left we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.