The re-sale value of a leasehold property in Birkenshaw is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be finalised ahead of the 80 year mark. Current legislation enables Birkenshaw qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Birkenshaw with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Birkenshaw can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 Birkenshaw lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of protracted correspondence with the freeholder of her first floor apartment in Birkenshaw, Molly commenced the lease extension process just as her lease was coming close to the all-important 80-year mark. The transaction was concluded in April 2014. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. U Mason took over the lease of a garden apartment in Birkenshaw in May 2003. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Birkenshaw with a long lease were worth £201,200. The mid-range amount of ground rent was £55 invoiced monthly. The lease finished on 23 May 2081. Given that there were 56 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.
Last Spring we were contacted by Dr Toby Wilson , who owned a basement apartment in Birkenshaw in November 2001. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative premises in Birkenshaw with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed annually. The lease concluded in 2101. Taking into account 76 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.