With a domestic leasehold premises in Selly Oak, you effectively rent it for a certain amount of time. Modern 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 a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years left. Anyone in Selly Oak with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has under eighty years left, under the relevant Act the landlord can calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Selly Oak with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| 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. |
| 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. |
Lease extensions in Selly Oak can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer 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 a wealth of experience dealing with Selly Oak lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Charlie, started to get close to the eighty-year mark with the lease on his leasehold flat in Selly Oak. Having bought his home two decades ago, the unexpired term was of little bearing. Luckily, he became aware that he needed to take action soon on a lease extension. Charlie extended the lease at the eleventh hour last August. Charlie and the freeholder ultimately settled on the final figure of £5,000 . If he had missed the deadline, the premium would have escalated by a minimum £1,050.
In 2009 we were phoned by Mrs Morgan Smith who, having purchased a one bedroom apartment in Selly Oak in October 2008. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Identical homes in Selly Oak with an extended lease were valued about £285,000. The average amount of ground rent was £55 collected per annum. The lease ran out in 2105. Considering the 80 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Mr Harvey García was assigned a lease of a one bedroom apartment in Selly Oak in March 2007. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparative homes in Selly Oak with an extended lease were in the region of £200,800. The average amount of ground rent was £65 collected quarterly. The lease came to a finish on 7 May 2085. Given that there were 60 years unexpired we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including fees.