When it comes to residential leasehold premises in Harborne, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are less than 80 years remaining. Residents in Harborne with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. When the lease term has under 80 years left, under the relevant Act the freeholder can calculate and charge a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Retaining our service gives you enhanced control over the value of your Harborne leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Riley was the the leasehold owner of a high value flat in Harborne on the market with a lease of a few days over 61 years unexpired. Riley informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Riley to invoke his statutory right. Riley procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Ms P Rodríguez bought a purpose-built apartment in Harborne in October 1996. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical flats in Harborne with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 billed quarterly. The lease terminated on 7 September 2082. Having 57 years unexpired we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of costs.
Ms S Martínez took over the lease of a purpose-built apartment in Harborne in September 2012. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative properties in Harborne with an extended lease were valued around £245,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease elapsed in 2093. Given that there were 68 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.