Unfortunately that a Perton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Perton property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term falls under 80 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. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Perton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not qualify. 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 throughout the formalities.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 Perton can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 Perton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy discussions with the landlord of her first floor apartment in Perton, Alisha started the lease extension process just as her lease was nearing the crucial eighty-year mark. The lease extension completed in September 2007. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. R Khan was assigned a lease of a basement flat in Perton in April 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Perton with a long lease were worth £275,000. The mid-range amount of ground rent was £65 billed yearly. The lease came to a finish on 20 October 2094. Considering the 68 years as a residual term we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
Last month we were called by Ms Ellen Hernández , who bought a one bedroom apartment in Perton in August 2002. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical flats in Perton with an extended lease were worth £208,600. The average ground rent payable was £60 collected quarterly. The lease finished on 2 October 2083. Given that there were 57 years outstanding we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus legals.