Birstall leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Birstall enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Birstall you must investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Birstall can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 a wealth of experience dealing with Birstall 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 9 months of lengthy negotiations with the landlord of her studio apartment in Birstall, Aimee commenced the lease extension process as the eighty year threshold was fast nearing. The legal work was finalised in March 2007. The landlord’s fees were negotiated to under 650 GBP.
Last Winter we were called by Mr and Mrs. W González , who completed a basement apartment in Birstall in February 2005. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar properties in Birstall with an extended lease were worth £295,000. The mid-range amount of ground rent was £50 billed annually. The lease terminated on 7 October 2101. Given that there were 75 years left we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.
In 2012 we were contacted by Mr Evan Evans who, having completed a ground floor flat in Birstall in June 1995. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar premises in Birstall with an extended lease were valued around £250,400. The average amount of ground rent was £65 billed monthly. The lease ran out on 20 June 2090. Having 64 years unexpired we estimated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of costs.