With a domestic leasehold premises in Birmingham and the Black Country, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Residents in Birmingham and the Black Country with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has fewer than eighty years left, under the current legislation the freeholder can calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Birmingham and the Black Country,the lease extension experts 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 Birmingham and the Black Country valuers.
Harvey was the the leasehold proprietor of a studio flat in Birmingham and the Black Country being marketed with a lease of fraction over 72 years left. Harvey informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Harvey to invoke his statutory right. Harvey procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Mrs D Gómez moved into a first floor apartment in Birmingham and the Black Country in September 2001. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical homes in Birmingham and the Black Country with 100 year plus lease were valued around £200,800. The mid-range ground rent payable was £65 billed quarterly. The lease terminated on 7 July 2086. Having 60 years unexpired we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus professional charges.
Last month we were contacted by Mrs T Moore , who completed a basement flat in Birmingham and the Black Country in February 2002. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparable flats in Birmingham and the Black Country with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected quarterly. The lease expired in 2097. Having 71 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.