The only way is down when it comes to Birch and Middleton lease terms. Birch and Middleton properties that have a remaining term shorter than 80 years will reduce in market price even faster, and the cost to extend your lease will rise.
Leasehold premises in Birch and Middleton with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Birch and Middleton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Birch and Middleton valuers.
Following lengthy discussions with the landlord of her basement apartment in Birch and Middleton, Emma initiated the lease extension process as the eighty year threshold was swiftly coming. The legal work was concluded in March 2008. The landlord’s fees were negotiated to about 500 GBP.
In 2011 we were phoned by Mrs C Carter who, having completed a studio flat in Birch and Middleton in July 2004. The question was if we could estimate the premium could be for a ninety year extension to my lease. Similar homes in Birch and Middleton with 100 year plus lease were valued around £166,800. The average amount of ground rent was £50 invoiced every twelve months. The lease finished on 27 September 2075. Having 50 years outstanding we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 plus expenses.
In 2010 we were e-mailed by Mr and Mrs. K Morel who, having purchased a first floor apartment in Birch and Middleton in February 2005. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Identical premises in Birch and Middleton with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 collected yearly. The lease lapsed in 2095. Taking into account 70 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.