The market value of Birstall leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is less than eighty years
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Birstall lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Matthew owned a studio flat in Birstall on the market with a lease of fraction over fifty eight years left. Matthew informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Matthew to exercise his statutory right. Matthew procured expert legal guidance and secured satisfactory deal informally and sell the property.
Last year we were contacted by Ms Alicia Lefebvre , who bought a first floor flat in Birstall in November 1999. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Similar properties in Birstall with a long lease were valued about £233,200. The average ground rent payable was £60 billed monthly. The lease lapsed on 5 June 2087. Having 61 years unexpired we estimated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 plus costs.
Mrs C Martínez bought a ground floor apartment in Birstall in November 2004. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative premises in Birstall with an extended lease were valued around £171,800. The mid-range amount of ground rent was £55 billed per annum. The lease ended on 3 June 2076. Considering the 50 years remaining we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of professional charges.