Birstall leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Birstall residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Birstall you must investigate if your lease has between 70 and 90 years left. There are good reasons why a Birstall flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is actioned without delay
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Lease extensions in Birstall can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in this area.
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 procuring Birstall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathan owned a conversion flat in Birstall being marketed with a lease of just over fifty eight years remaining. Nathan informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Nathan to invoke his statutory right. Nathan procured expert advice and secured an acceptable deal informally and readily saleable.
In 2014 we were contacted by Mr and Mrs. P Bennett who, having owned a studio flat in Birstall in June 2004. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative residencies in Birstall with 100 year plus lease were worth £260,200. The average amount of ground rent was £65 billed monthly. The lease ran out in 2091. Considering the 66 years remaining we estimated the premium to the landlord to extend the lease to be within £16,200 and £18,600 plus costs.
In 2011 we were phoned by Mr and Mrs. L Bennett who, having moved into a garden apartment in Birstall in February 1995. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Identical flats in Birstall with an extended lease were worth £198,800. The mid-range amount of ground rent was £55 collected per annum. The lease ended on 17 June 2080. Having 55 years outstanding we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 plus fees.