Unfortunately that a Bartley Green residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Bartley Green property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining slips under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Bartley Green will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. 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 conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Bartley Green with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Using our service will provide you better control over the value of your Bartley Green leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Noah, started to get close to the 80-year threshold with the lease on his studio flat in Bartley Green. Having purchased his home twenty years previously, the length of the lease was of little relevance. Luckily, he realised he needed to take steps soon on Extending the lease. Noah arranged for a lease extension just ahead of time last August. Noah and the freeholder via the managing agents eventually settled on the final figure of £5,500 . If he failed to meet the deadline, the figure would have increased by a minimum £875.
In 2011 we were phoned by Mr and Mrs. D Jackson who, having acquired a one bedroom apartment in Bartley Green in March 1996. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Bartley Green with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 invoiced every twelve months. The lease ended in 2077. Taking into account 52 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of costs.
Ms Madeleine Gunderson bought a one bedroom apartment in Bartley Green in February 1999. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Similar properties in Bartley Green with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 billed yearly. The lease expired on 15 April 2097. Taking into account 72 years remaining we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.