Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Barnt Green. Inevitably, the term of lease left reduces over time. This may pass by relatively unnoticed when the property needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Barnt Green have the legal entitlement to extend the lease for an additional ninety years under legislation. Do give due consideration before delaying your Barnt Green lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension
Leasehold residencies in Barnt Green with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| Leeds Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland |
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.
Two years ago Rory, came critically near to the 80-year mark with the lease on his garden apartment in Barnt Green. Having bought his flat 19 years previously, the unexpired term was of little interest. As luck would have it, it dawned on him that he would soon be paying way over the odds for a lease extension. Rory was able to extend his lease just ahead of time in June. Rory and the landlord who owned the flat above in the end agreed on sum of £5,500 . If the lease had slid below 80 years, the price would have increased by at least £1,075.
Last Spring we were called by Mr and Mrs. O Ramírez , who took over the lease of a studio flat in Barnt Green in June 2012. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical flats in Barnt Green with an extended lease were worth £275,000. The average ground rent payable was £45 billed quarterly. The lease lapsed in 2095. Having 69 years remaining we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.
In 2009 we were contacted by Mr and Mrs. K Jones who, having completed a ground floor apartment in Barnt Green in May 2002. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparative premises in Barnt Green with an extended lease were in the region of £216,000. The average amount of ground rent was £60 invoiced per annum. The lease ended on 14 August 2084. Taking into account 58 years unexpired we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.