Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Birchington. Inevitably, the length of lease left reduces as time goes by. This is often ignored and only becomes a problem when the flat or house needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Birchington have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. You should give careful deliberation before delaying your Birchington lease extension. Holding off that expense now likely increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Birchington can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Birchington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the landlord of her basement apartment in Birchington, Leah initiated the lease extension process just as the lease was coming close to the all-important eighty-year mark. The transaction was concluded in September 2006. The freeholder’s fees were restricted to under 700 GBP.
Last Autumn we were phoned by Mrs U Adams , who moved into a one bedroom apartment in Birchington in February 2002. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparable premises in Birchington with 100 year plus lease were worth £201,200. The average amount of ground rent was £55 billed annually. The lease elapsed in 2082. Having 56 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of fees.
In 2009 we were approached by Mrs Amy Kelly who, having took over the lease of a basement apartment in Birchington in August 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Identical properties in Birchington with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 collected yearly. The lease ran out on 19 April 2102. Having 76 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.