Halesowen leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Halesowen tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Halesowen you would be well advised to investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Halesowen leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Lease extensions in Halesowen can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Halesowen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Noah owned a conversion apartment in Halesowen on the market with a lease of a little over 72 years unexpired. Noah on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Noah to invoke his statutory right. Noah obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last Winter we were called by Mrs B López , who completed a basement apartment in Halesowen in April 2007. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical homes in Halesowen with a long lease were valued about £227,800. The average amount of ground rent was £45 collected monthly. The lease ran out on 4 January 2091. Considering the 65 years unexpired we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.
Last April we were called by Dr C Martínez , who bought a ground floor apartment in Halesowen in July 2011. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative flats in Halesowen with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 billed every twelve months. The lease elapsed on 17 February 2102. Taking into account 76 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.