When it comes to residential leasehold premises in Hall Green, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than 80 years remaining. Leasehold owners in Hall Green with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has less than 80 years remaining, under the relevant Act the freeholder is entitled to calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Hall Green with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
Lease extensions in Hall Green can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 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.
Kyle was the the leasehold proprietor of a high value apartment in Hall Green on the market with a lease of fraction over 72 years left. Kyle on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Last Autumn we were approach by Ms U Wood , who owned a basement apartment in Hall Green in August 2008. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Comparative premises in Hall Green with 100 year plus lease were worth £275,000. The average ground rent payable was £65 invoiced per annum. The lease terminated in 2093. Taking into account 68 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.
Last Autumn we were phoned by Mr Connor Edwards , who took over the lease of a purpose-built flat in Hall Green in August 2002. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparable premises in Hall Green with 100 year plus lease were worth £208,600. The average ground rent payable was £60 collected quarterly. The lease came to a finish in 2082. Taking into account 57 years outstanding we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including fees.