Bartley Green leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Bartley Green tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Bartley Green you would be well advised to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Bartley Green with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. 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 |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| The Mortgage Works |
The lawyers that we work with handle Bartley 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.
In the wake of eight months of unsuccessful negotiations with the landlord of her leasehold apartment in Bartley Green, Rebecca commenced the lease extension process just as her lease was coming close to the crucial 80-year mark. The legal work was concluded in September 2011. The landlord’s charges were kept to an absolute minimum.
Ms R Bailey bought a studio apartment in Bartley Green in August 2005. The question was if we could estimate the premium would likely be for a 90 year lease extension. Identical properties in Bartley Green with 100 year plus lease were worth £295,000. The average ground rent payable was £45 billed yearly. The lease ended in 2100. Given that there were 74 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.
Mr and Mrs. T Richardson was assigned a lease of a one bedroom flat in Bartley Green in August 2002. The question was if we could approximate the premium would likely be for a 90 year lease extension. Similar properties in Bartley Green with 100 year plus lease were valued around £243,000. The mid-range amount of ground rent was £65 collected monthly. The lease concluded on 6 April 2089. Considering the 63 years unexpired we estimated the premium to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of legals.