It’s an underpublicised certainty that a Browns Green residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Browns Green property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Browns Green will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Browns Green with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Browns Green can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge procuring Browns Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the landlord of her studio flat in Browns Green, Isobel started the lease extension process as the 80 year mark was fast coming. The lease extension was finalised in January 2012. The landlord’s costs were negotiated to under six hundred GBP.
In 2009 we were contacted by Mr and Mrs. D Simon who, having completed a ground floor apartment in Browns Green in February 1997. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar homes in Browns Green with an extended lease were worth £270,000. The mid-range ground rent payable was £55 invoiced annually. The lease concluded on 21 October 2101. Considering the 75 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
In 2013 we were approached by Mr and Mrs. G Cox who, having acquired a basement flat in Browns Green in September 1998. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Browns Green with 100 year plus lease were valued around £168,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease concluded on 7 November 2081. Having 55 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus expenses.