The market value of Hall Green leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the remaining term is less than 80 years
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Hall Green can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor 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 a wealth of experience procuring Hall Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Adam was the the leasehold owner of a 2 bedroom flat in Hall Green on the market with a lease of a little over 72 years left. Adam informally contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Adam to exercise his statutory right. Adam obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the property.
In 2011 we were contacted by Mr and Mrs. M Jones who, having moved into a garden flat in Hall Green in July 2000. We are asked if we could estimate the price could be for a 90 year lease extension. Identical homes in Hall Green with a long lease were valued around £285,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease came to a finish in 2097. Taking into account 71 years unexpired we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Mr K Lee was assigned a lease of a recently refurbished apartment in Hall Green in July 2004. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative homes in Hall Green with 100 year plus lease were in the region of £225,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease expired on 19 July 2086. Having 60 years unexpired we calculated the premium to the landlord for the lease extension to be within £24,700 and £28,600 plus expenses.