On the balance of probabilities if you own a flat in Bartley Green you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.
Ali was the the leasehold proprietor of a high value apartment in Bartley Green being marketed with a lease of fraction over sixty years remaining. Ali informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be due on a lease extension were Ali to exercise his statutory right. Ali obtained expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
Last Summer we were contacted by Mr and Mrs. B Johnson , who owned a purpose-built apartment in Bartley Green in July 2010. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative properties in Bartley Green with a long lease were worth £300,000. The mid-range ground rent payable was £50 invoiced per annum. The lease concluded in 2101. Having 76 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.
Last Christmas we were contacted by Mr and Mrs. Y Girard , who acquired a purpose-built apartment in Bartley Green in January 1995. We are asked if we could estimate the price could be to extend the lease by an additional years. Identical premises in Bartley Green with a long lease were in the region of £252,800. The average ground rent payable was £65 collected quarterly. The lease ended on 17 September 2090. Taking into account 65 years outstanding we estimated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus fees.