Perry Barr residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Perry Barr 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.
Following lengthy correspondence with the freeholder of her studio apartment in Perry Barr, Molly initiated the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The transaction was concluded in October 2006. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were contacted by Ms U Anderson who, having owned a purpose-built apartment in Perry Barr in October 2007. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar flats in Perry Barr with a long lease were worth £189,000. The average ground rent payable was £55 billed monthly. The lease lapsed on 25 March 2078. Considering the 53 years left we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus professional charges.
Mr and Mrs. W Bonnet took over the lease of a first floor flat in Perry Barr in January 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Perry Barr with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 billed monthly. The lease ended on 13 January 2098. Having 73 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.