When it comes to domestic leasehold property in Selly Oak, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably when there are less than 80 years left. Residents in Selly Oak with a lease approaching 81 years left should seriously think of extending it without delay. When the lease term has under eighty years outstanding, under the relevant legislation the landlord can calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Selly Oak with over one hundred years unexpired 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 purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Selly Oak leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Thomas was the the leasehold proprietor of a conversion flat in Selly Oak being marketed with a lease of a few days over sixty years left. Thomas informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Thomas to invoke his statutory right. Thomas obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2009 we were phoned by Dr E Brown who, having moved into a studio apartment in Selly Oak in January 1995. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparative residencies in Selly Oak with 100 year plus lease were valued about £256,600. The average ground rent payable was £60 billed yearly. The lease came to a finish in 2078. Considering the 52 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £41,800 and £48,400 not including legals.
Mr and Mrs. L Peterson was assigned a lease of a first floor flat in Selly Oak in September 2006. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparative residencies in Selly Oak with a long lease were in the region of £218,000. The average ground rent payable was £45 billed monthly. The lease expired on 4 November 2089. Considering the 63 years unexpired we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including costs.