Unfortunately that a Rubery 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 early years due to the depreciation being disguised by increases in the Rubery property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be due. The majority of flat owners in Rubery will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Engaging our service gives you better control over the value of your Rubery leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the freeholder of her one bedroom apartment in Rubery, Abigail commenced the lease extension process as the 80 year deadline was swiftly advancing. The legal work was concluded in May 2008. The freeholder’s costs were restricted to less than 500 pounds.
In 2013 we were called by Mr and Mrs. V Clarke who, having was assigned a lease of a one bedroom flat in Rubery in June 2005. The question was if we could estimate the premium would be for a ninety year lease extension. Identical residencies in Rubery with an extended lease were valued about £275,000. The mid-range ground rent payable was £45 billed quarterly. The lease expired on 26 November 2094. Given that there were 69 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.
Last Christmas we were e-mailed by Mr and Mrs. R Cook , who bought a one bedroom apartment in Rubery in April 2002. The question was if we could estimate the premium could be for a 90 year lease extension. Identical residencies in Rubery with a long lease were worth £216,000. The mid-range ground rent payable was £60 collected quarterly. The lease elapsed on 4 March 2083. Having 58 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including fees.