It’s a harsh certainty that a Harborne residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Harborne property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining falls under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Harborne will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Virgin |
The conveyancing solicitors that we work with handle Harborne lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Alexander owned a conversion apartment in Harborne on the market with a lease of fraction over fifty eight years outstanding. Alexander informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Alexander to exercise his statutory right. Alexander obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Christmas we were e-mailed by Mr S Martin , who acquired a ground floor apartment in Harborne in March 2005. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable homes in Harborne with a long lease were worth £193,400. The mid-range ground rent payable was £65 collected annually. The lease came to a finish on 2 July 2085. Considering the 59 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of legals.
In 2011 we were phoned by Mrs Georgina Mitchell who, having acquired a basement apartment in Harborne in August 2005. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Harborne with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 collected monthly. The lease lapsed in 2096. Taking into account 70 years outstanding we estimated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 exclusive of legals.