There is no doubt about it a leasehold flat or house in Selly Oak is a wasting asset as a result of the diminishing lease term. Where the lease has, over 125 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner than later. The majority of flat owners in Selly Oak will qualify for this right; that being said a lawyer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Selly Oak with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Leeds Building Society | |
| Santander | |
| TSB |
The conveyancers that we work with procure Selly Oak 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 lawyer we work with provide it.
Kian was the the leasehold owner of a conversion apartment in Selly Oak being marketed with a lease of a little over 72 years left. Kian informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Kian to exercise his statutory right. Kian obtained expert advice and secured satisfactory deal without going to tribunal and sell the flat.
Last Summer we were e-mailed by Dr Harvey Baker , who owned a one bedroom flat in Selly Oak in October 2012. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Selly Oak with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 collected quarterly. The lease termination date was on 12 September 2092. Having 66 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.
In 2010 we were phoned by Mrs Y Davis who, having took over the lease of a purpose-built flat in Selly Oak in May 1996. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Selly Oak with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £55 collected yearly. The lease came to a finish on 23 August 2103. Having 77 years remaining we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.