Great Barr leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles 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 investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Great Barr flat owner with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 landlord in Great Barr,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 Great Barr valuers.
Half a year ago Joseph, came precariously near to the eighty-year threshold with the lease on his two bedroom apartment in Great Barr. In buying his property twenty years previously, the unexpired term was of no concern. Thankfully, he noticed he would soon be paying way over the odds for a lease extension. Joseph extended the lease at the eleventh hour in April. Joseph and the landlord ultimately settled on the final figure of £5,500 . If he not met the deadline, the figure would have gone up by a minimum £950.
In 2009 we were called by Ms Rebecca Sharif who, having was assigned a lease of a newly refurbished flat in Great Barr in June 2006. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparable premises in Great Barr with a long lease were valued about £280,000. The mid-range amount of ground rent was £45 billed quarterly. The lease elapsed in 2094. Given that there were 69 years unexpired we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.
Last May we were approach by Mr Harvey Williams , who bought a ground floor flat in Great Barr in June 1998. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Great Barr with a long lease were worth £216,000. The mid-range ground rent payable was £60 invoiced yearly. The lease ran out in 2083. Taking into account 58 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including professional charges.