Hall Green leases on residential deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease falls below 80 years - otherwise a higher amount will be due. Flat owners in Hall Green will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold premises in Hall Green with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Coventry Building Society | 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. |
| 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 Hall Green,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hall Green valuers.
Two years ago William, started to get near to the 80-year mark with the lease on his garden apartment in Hall Green. Having purchased his flat twenty years ago, the length of the lease was of no importance. by good luck, he realised he needed to take action soon on a lease extension. William arranged for a lease extension at the eleventh hour last June. William and the landlord eventually agreed on a premium of £5,000 . If he had missed the deadline, the premium would have gone up by a minimum £1,050.
Last Winter we were called by Mr and Mrs. O Brooks , who took over the lease of a first floor apartment in Hall Green in April 1997. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable premises in Hall Green with an extended lease were valued around £233,200. The average amount of ground rent was £60 invoiced yearly. The lease ended on 13 May 2086. Given that there were 61 years unexpired we calculated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including fees.
Mrs U King took over the lease of a basement flat in Hall Green in October 1998. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative premises in Hall Green with a long lease were valued about £171,800. The average amount of ground rent was £55 billed per annum. The lease elapsed on 6 September 2075. Considering the 50 years remaining we calculated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 not including costs.