There is no doubt about it a leasehold property in Rubery is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 100 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. The majority of flat owners in Rubery will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Rubery with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date 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 |
The conveyancers that we work with undertake Rubery 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 conveyancer we work with provide it.
After protracted discussions with the landlord of her leasehold flat in Rubery, Natasha started the lease extension process as the 80 year mark was quickly nearing. The lease extension completed in June 2005. The landlord’s costs were restricted to slightly above five hundred GBP.
Mr J Bertrand was assigned a lease of a first floor flat in Rubery in October 1995. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparable homes in Rubery with a long lease were valued about £208,600. The average amount of ground rent was £60 collected yearly. The lease ran out on 15 June 2082. Having 57 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of costs.
Mr and Mrs. U André purchased a ground floor apartment in Rubery in April 2004. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar properties in Rubery with 100 year plus lease were valued about £200,000. The average ground rent payable was £50 billed annually. The lease came to a finish on 13 April 2102. Having 77 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.