Rednal leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the current lease dips under eighty years - otherwise a higher amount will be payable. Leasehold owners in Rednal will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not be entitled. There are also strict timetables and steps to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Rednal,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rednal valuers.
During the course of the last few months Matthew, came critically near to the eighty-year threshold with the lease on his garden flat in Rednal. In buying his property two decades ago, the lease term was of no importance. Luckily, he noticed he would soon be paying an inflated amount for Extending the lease. Matthew was able to extend his lease just in the nick of time last August. Matthew and the landlord in the end agreed on a premium of £5,000 . If the lease had dropped lower than 80 years, the figure would have gone up by at least £1,000.
Mr R Morgan completed a ground floor apartment in Rednal in January 2004. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative flats in Rednal with an extended lease were in the region of £267,600. The average ground rent payable was £65 billed monthly. The lease terminated in 2092. Given that there were 67 years as a residual term we calculated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of legals.
Ms M Watson was assigned a lease of a garden flat in Rednal in March 1997. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative flats in Rednal with 100 year plus lease were valued around £201,200. The mid-range ground rent payable was £55 invoiced annually. The lease expired on 26 October 2081. Having 56 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.