Edgbaston leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Edgbaston will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some cases you may not qualify. There are prescribed deadlines and formalities to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Edgbaston with over one hundred years unexpired 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 purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a freeholder in Edgbaston,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Edgbaston valuers.
Twenty four months ago Dexter, came very close to the eighty-year mark with the lease on his studio apartment in Edgbaston. Having purchased his flat twenty years ago, the unexpired term was of no bearing. Luckily, he recognised he would soon be paying an escalated premium for Extending the lease. Dexter extended the lease at the eleventh hour in May. Dexter and the landlord ultimately settled on the final figure of £6,000 . If the lease had gone to less than 80 years, the amount would have gone up by a minimum £850.
Last Autumn we were phoned by Mr Jake Howard , who took over the lease of a studio apartment in Edgbaston in September 2012. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative flats in Edgbaston with an extended lease were valued around £200,800. The mid-range amount of ground rent was £65 invoiced annually. The lease expiry date was on 17 April 2086. Given that there were 60 years left we approximated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 plus fees.
In 2013 we were contacted by Dr J Lewis who, having moved into a ground floor apartment in Edgbaston in September 2003. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable properties in Edgbaston with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 invoiced yearly. The lease finished on 22 September 2097. Given that there were 71 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.