When it comes to long leasehold premises in Bartley Green, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Anyone in Bartley Green with a lease nearing 81 years remaining should seriously consider extending it without delay. Once a lease has under eighty years remaining, under the current Act the landlord is entitled to calculate and demand a greater amount, based on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
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.
Ali was the the leasehold owner of a conversion apartment in Bartley Green being sold with a lease of a little over 72 years outstanding. Ali informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Ali to exercise his statutory right. Ali obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Ms Samantha Ali took over the lease of a garden apartment in Bartley Green in May 1996. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical residencies in Bartley Green with 100 year plus lease were in the region of £250,400. The average ground rent payable was £65 collected every twelve months. The lease concluded in 2089. Having 64 years remaining we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of legals.
Mr and Mrs. Y Martin moved into a studio apartment in Bartley Green in February 1997. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparable residencies in Bartley Green with 100 year plus lease were in the region of £184,000. The mid-range ground rent payable was £55 invoiced monthly. The lease expired on 8 November 2078. Considering the 53 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including costs.