On the balance of probabilities where you own a flat in Edgbaston you actually own a long leasehold interest over your property
Leasehold premises in Edgbaston with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with undertake Edgbaston 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 conveyancer we work with provide it.
Elijah was the the leasehold proprietor of a conversion apartment in Edgbaston on the market with a lease of a little over fifty eight years outstanding. Elijah informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Elijah to exercise his statutory right. Elijah procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the flat.
Last year we were approach by Mr and Mrs. M Adams , who took over the lease of a one bedroom flat in Edgbaston in April 2004. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Similar homes in Edgbaston with 100 year plus lease were worth £254,200. The mid-range amount of ground rent was £60 invoiced monthly. The lease terminated in 2076. Having 51 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 plus legals.
Last Christmas we were called by Mr E Lewis , who owned a basement apartment in Edgbaston in March 2006. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical homes in Edgbaston with an extended lease were valued around £210,600. The average amount of ground rent was £45 billed annually. The lease expired in 2087. Given that there were 62 years remaining we calculated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.