The nearer a domestic lease in Birmingham and the Black Country gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, more than 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Birmingham and the Black Country will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Birmingham and the Black Country with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works |
Using our service will provide you enhanced control over the value of your Birmingham and the Black Country leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Rory, started to get near to the 80-year mark with the lease on his purpose- built flat in Birmingham and the Black Country. Having bought his flat twenty years previously, the lease term was of little significance. by good luck, it dawned on him that he would soon be paying way over the odds for Extending the lease. Rory arranged for a lease extension just in the nick of time last August. Rory and the freeholder eventually agreed on a premium of £6,000 . If the lease had dipped lower than eighty years, the price would have escalated by at least £1,000.
In 2014 we were e-mailed by Mrs W Sharif who, having moved into a ground floor flat in Birmingham and the Black Country in August 1997. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable residencies in Birmingham and the Black Country with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 billed every twelve months. The lease ran out in 2098. Having 72 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Summer we were contacted by Mr and Mrs. J Jones , who took over the lease of a one bedroom flat in Birmingham and the Black Country in June 2000. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Birmingham and the Black Country with a long lease were valued around £256,600. The average ground rent payable was £60 invoiced quarterly. The lease terminated on 4 March 2078. Taking into account 52 years left we approximated the premium to the landlord for the lease extension to be between £39,000 and £45,000 plus fees.