Great Barr leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Great Barr residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Great Barr you would be well advised to see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Great Barr,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 in-depth market knowledge and the close ties they enjoy with Great Barr valuers.
Following protracted negotiations with the freeholder of her purpose-built apartment in Great Barr, Rosie started the lease extension process as the eighty year deadline was rapidly approaching. The legal work was concluded in January 2009. The landlord’s fees were restricted to about 650 GBP.
Mr and Mrs. C Adams was assigned a lease of a basement flat in Great Barr in September 2008. We are asked if we could estimate the price could be for a 90 year lease extension. Identical flats in Great Barr with an extended lease were in the region of £205,000. The average amount of ground rent was £50 collected monthly. The lease finished on 13 March 2104. Having 78 years outstanding we calculated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 not including costs.
In 2009 we were contacted by Mr and Mrs. E Gunderson who, having acquired a ground floor apartment in Great Barr in October 1998. We are asked if we could approximate the price would be for a 90 year lease extension. Comparable residencies in Great Barr with 100 year plus lease were worth £270,000. The average amount of ground rent was £65 billed yearly. The lease terminated on 23 June 2094. Taking into account 68 years outstanding we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.