With a residential leasehold property in Rubery, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are fewer than 80 years left. Anyone in Rubery with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has under eighty years left, under the relevant legislation the landlord is entitled to calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Rubery can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 Rubery lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the freeholder of her studio apartment in Rubery, Mollie started the lease extension process as the eighty year deadline was rapidly nearing. The transaction completed in March 2005. The landlord’s costs were restricted to under 500 pounds.
Mr F Martinez purchased a garden flat in Rubery in August 2008. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparable flats in Rubery with 100 year plus lease were valued around £300,000. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded on 18 January 2101. Given that there were 76 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
In 2012 we were phoned by Dr Ryan Bonnet who, having acquired a basement apartment in Rubery in July 2006. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparative homes in Rubery with an extended lease were in the region of £257,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease concluded in 2090. Taking into account 65 years remaining we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of fees.