Bartley Green leases on domestic properties are gradually losing value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Bartley Green will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some circumstances you may not qualify. There are also strict timetables and formalities to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Bartley Green with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service gives you increased control over the value of your Bartley Green leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Noah, started to get near to the eighty-year mark with the lease on his two bedroom flat in Bartley Green. Having purchased his flat 18 years ago, the length of the lease was of minimal interest. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Noah was able to extend his lease at the eleventh hour in May. Noah and the freeholder via the managing agents in the end settled on the final figure of £6,000 . If the lease had dropped to less than eighty years, the premium would have increased by at least £1,025.
In 2009 we were approached by Dr H Leroy who, having completed a newly refurbished flat in Bartley Green in January 2003. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative residencies in Bartley Green with 100 year plus lease were worth £166,800. The average ground rent payable was £50 collected per annum. The lease ran out on 1 January 2076. Given that there were 50 years remaining we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of expenses.
In 2009 we were approached by Ms E Robinson who, having moved into a studio flat in Bartley Green in May 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Bartley Green with 100 year plus lease were valued around £280,000. The average amount of ground rent was £45 invoiced yearly. The lease lapsed on 10 November 2096. Having 70 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.