The re-sale value of a leasehold property in Birstall depends on how many years the lease has left to run. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that all matters can be addressed well before the 80 year cut off point. Leasehold Reform legislation entitles Birstall qualifying lessees to an additional term of ninety years over and above the remaining term, at a peppercorn rent (zero ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Birstall with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Birstall can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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.
Last year George, started to get close to the eighty-year threshold with the lease on his basement flat in Birstall. In buying his home 19 years previously, the lease term was of no relevance. Thankfully, he became aware that he needed to take steps soon on a lease extension. George arranged for a lease extension just under the wire last September. George and the freeholder eventually agreed on sum of £5,500 . If the lease had slipped below 80 years, the premium would have become more exhorbitant by at least £900.
Mr and Mrs. C Phillips purchased a basement apartment in Birstall in July 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative premises in Birstall with 100 year plus lease were valued about £223,400. The average amount of ground rent was £60 billed quarterly. The lease expiry date was on 17 February 2085. Considering the 59 years unexpired we estimated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 not including professional charges.
In 2013 we were e-mailed by Dr F Morel who, having purchased a purpose-built apartment in Birstall in May 2009. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparable flats in Birstall with a long lease were valued around £205,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease lapsed on 20 July 2105. Having 79 years left we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.