For anyone whose Erdington flat is held on a long lease, our message is clear – if you do nothing, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
Leasehold properties in Erdington with more than 100 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 freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Erdington,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Erdington valuers.
Following lengthy discussions with the landlord of her purpose-built flat in Erdington, Freya initiated the lease extension process just as the lease was nearing the critical 80-year mark. The lease extension completed in October 2006. The freeholder’s charges were kept to an absolute minimum.
Last Spring we were phoned by Mr and Mrs. V Bell , who bought a one bedroom apartment in Erdington in August 2006. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Identical properties in Erdington with 100 year plus lease were valued around £176,200. The mid-range amount of ground rent was £65 collected monthly. The lease expired in 2082. Considering the 56 years outstanding we estimated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 plus fees.
Last Christmas we were approach by Mr and Mrs. Y Williams , who took over the lease of a studio flat in Erdington in June 2006. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable residencies in Erdington with an extended lease were worth £242,600. The mid-range amount of ground rent was £45 billed monthly. The lease elapsed on 6 November 2093. Having 67 years left we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 not including costs.