Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Birstall. Inevitably, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Birstall have the right to extend the lease for an additional 90 years under statute. Please give careful consideration before putting off your Birstall lease extension. Putting off that expense now only increases the price you will eventually incur for a lease extension
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 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Birstall leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Jamie, came very near to the 80-year mark with the lease on his garden flat in Birstall. In buying his home two decades ago, the unexpired term was of no significance. Fortunately, he became aware that he would soon be paying an inflated amount for a lease extension. Jamie was able to extend his lease just in the nick of time last May. Jamie and the freeholder eventually settled on an amount of £5,000 . If the lease had descended lower than eighty years, the amount would have become more costly by a minimum £1,025.
In 2010 we were approached by Dr Ibrahim Hill who, having purchased a studio apartment in Birstall in February 2011. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparable residencies in Birstall with a long lease were in the region of £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease lapsed in 2097. Considering the 71 years remaining we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
Last Spring we were phoned by Dr Melissa Harris , who completed a studio flat in Birstall in July 2007. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Birstall with an extended lease were worth £225,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease lapsed on 2 July 2086. Taking into account 60 years unexpired we approximated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 plus fees.