When it comes to long leasehold premises in Small Heath, you are actually buying a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Leasehold owners in Small Heath with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has fewer than eighty years remaining, under the current legislation the freeholder can calculate and levy a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Small Heath can be a difficult process. We recommend you secure guidance from a conveyancer 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 procuring Small Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy negotiations with the freeholder of her purpose-built apartment in Small Heath, Francesca initiated the lease extension process just as the lease was coming close to the critical eighty-year threshold. The transaction completed in November 2013. The landlord’s costs were negotiated to less than 700 GBP.
Dr Henry Moore owned a studio apartment in Small Heath in April 2004. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparable homes in Small Heath with a long lease were valued about £261,600. The average amount of ground rent was £60 billed yearly. The lease expiry date was in 2078. Given that there were 52 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 plus professional charges.
In 2010 we were e-mailed by Ms Samantha Fournier who, having owned a purpose-built apartment in Small Heath in May 1997. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable premises in Small Heath with an extended lease were valued around £218,000. The average ground rent payable was £45 invoiced annually. The lease concluded on 9 February 2089. Taking into account 63 years left we calculated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of fees.