Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Birchgrove. Inevitably, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Birchgrove have the right to extend the lease for a further ninety years in accordance with statute. Please give due consideration before delaying your Birchgrove lease extension. Putting off the cost now simply increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Birchgrove,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Birchgrove valuers.
Ethan was the the leasehold owner of a studio flat in Birchgrove being marketed with a lease of a few days over fifty eight years outstanding. Ethan informally contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert advice and secured an acceptable deal informally and readily saleable.
In 2009 we were called by Mr and Mrs. G Williams who, having acquired a garden flat in Birchgrove in October 1999. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Similar residencies in Birchgrove with a long lease were in the region of £250,400. The average ground rent payable was £65 billed monthly. The lease expired in 2090. Taking into account 64 years as a residual term we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus costs.
In 2009 we were approached by Dr Samantha Rivera who, having acquired a first floor flat in Birchgrove in September 2003. The question was if we could approximate the price would be to extend the lease by ninety years. Comparative homes in Birchgrove with a long lease were in the region of £189,000. The average ground rent payable was £55 billed yearly. The lease expiry date was in 2079. Considering the 53 years left we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of legals.