The nearer a residential lease in Birstall gets to zero years unexpired, the more it reduces the value of the property. If the lease has, over 100 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Birstall will meet the qualifying criteria; that being said a conveyancing solicitor will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you increased control over the value of your Birstall leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
James owned a high value flat in Birstall being marketed with a lease of a few days over 72 years remaining. James on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were James to invoke his statutory right. James procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last July we were approach by Mrs N Cooper , who moved into a basement apartment in Birstall in June 2003. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical properties in Birstall with an extended lease were in the region of £181,600. The average amount of ground rent was £55 invoiced monthly. The lease lapsed in 2078. Having 52 years outstanding we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including professional charges.
In 2011 we were phoned by Mr and Mrs. F Garcia who, having owned a garden flat in Birstall in November 2005. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Similar flats in Birstall with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease expiry date was on 18 June 2098. Taking into account 72 years remaining we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.