It’s a harsh truth that a Bartley Green residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Bartley Green property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Bartley Green will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Bartley Green with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| Santander | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Bartley Green can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Bartley Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon owned a 2 bedroom apartment in Bartley Green on the market with a lease of a little over 61 years left. Leon informally approached his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Leon to invoke his statutory right. Leon procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2012 we were contacted by Dr W Bernard who, having bought a studio flat in Bartley Green in August 2009. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Bartley Green with a long lease were worth £218,400. The average ground rent payable was £60 invoiced annually. The lease terminated on 19 September 2085. Having 59 years as a residual term we calculated the premium to the landlord to extend the lease to be within £27,600 and £31,800 plus professional charges.
In 2012 we were phoned by Ms Jade Campbell who, having bought a newly refurbished apartment in Bartley Green in March 2006. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Bartley Green with an extended lease were worth £205,000. The mid-range ground rent payable was £50 collected monthly. The lease expiry date was on 14 June 2105. Having 79 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.