With a residential leasehold property in Birmingham and the Black Country, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years left. Anyone in Birmingham and the Black Country with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has less than eighty years left, under the current statute the freeholder can calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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 freeholder in Birmingham and the Black Country,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 Birmingham and the Black Country valuers.
Off the back of lengthy discussions with the freeholder of her basement flat in Birmingham and the Black Country, Melissa started the lease extension process just as her lease was coming close to the crucial eighty-year mark. The legal work was concluded in October 2013. The freeholder’s charges were kept to an absolute minimum.
Last Summer we were contacted by Mr and Mrs. D Anderson , who purchased a purpose-built flat in Birmingham and the Black Country in January 2012. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Identical flats in Birmingham and the Black Country with 100 year plus lease were worth £254,200. The average ground rent payable was £60 collected monthly. The lease ran out in 2076. Taking into account 51 years as a residual term we approximated the premium to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of costs.
Last Winter we were contacted by Dr I Gray , who was assigned a lease of a basement apartment in Birmingham and the Black Country in November 2005. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar residencies in Birmingham and the Black Country with a long lease were worth £210,600. The average amount of ground rent was £45 collected monthly. The lease expired on 3 November 2087. Having 62 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of fees.