When it comes to domestic leasehold property in Barnt Green, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years remaining. Residents in Barnt Green with a lease nearing 81 years left should seriously think of extending it sooner as opposed to later. Once the lease term has below eighty years left, under the current statute the freeholder is entitled to calculate and demand a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Barnt Green with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Aarav was the the leasehold owner of a 2 bedroom flat in Barnt Green being marketed with a lease of a few days over sixty years outstanding. Aarav on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aarav to invoke his statutory right. Aarav procured expert advice and secured an acceptable resolution informally and sell the flat.
Last year we were contacted by Ms Abigail Bonnet , who bought a newly refurbished flat in Barnt Green in July 2005. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable homes in Barnt Green with a long lease were valued about £250,400. The mid-range ground rent payable was £65 billed monthly. The lease expired on 20 November 2090. Taking into account 64 years remaining we estimated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus professional charges.
Last Winter we were phoned by Mr and Mrs. Y Brooks , who was assigned a lease of a basement flat in Barnt Green in August 2008. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar premises in Barnt Green with an extended lease were in the region of £184,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease ran out on 16 May 2079. Taking into account 53 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of costs.