It’s an underpublicised truth that a Bartley Green residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Bartley Green property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term slips below 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. 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 confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Using our service gives you better control over the value of your Bartley Green leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Eliot, came critically close to the eighty-year threshold with the lease on his first floor apartment in Bartley Green. Having purchased his flat two decades ago, the unexpired term was of little relevance. As luck would have it, he became aware that he would imminently be paying way over the odds for a lease extension. Eliot arranged for a lease extension just under the wire in July. Eliot and the freeholder via the management company in the end settled on an amount of £5,500 . If he had missed the deadline, the price would have escalated by at least £1,025.
Mr and Mrs. I Evans was assigned a lease of a garden flat in Bartley Green in February 2007. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical premises in Bartley Green with 100 year plus lease were valued around £235,600. The average ground rent payable was £60 billed every twelve months. The lease expiry date was on 27 January 2088. Given that there were 62 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of legals.
Mr and Mrs. Y Lefèvre completed a garden apartment in Bartley Green in November 2004. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar premises in Bartley Green with 100 year plus lease were worth £174,200. The average ground rent payable was £55 collected quarterly. The lease expired in 2077. Considering the 51 years left we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus expenses.