The market value of Solihull leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the unexpired lease term is less than 80 years
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society | |
| TSB |
Irrespective of whether you are a tenant or a freeholder in Solihull,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Solihull valuers.
Arthur owned a conversion apartment in Solihull being marketed with a lease of a little over sixty years remaining. Arthur on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Arthur to invoke his statutory right. Arthur procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2009 we were called by Mr and Mrs. K Williams who, having moved into a ground floor flat in Solihull in September 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Solihull with an extended lease were worth £198,800. The average ground rent payable was £55 invoiced quarterly. The lease ran out on 6 March 2081. Given that there were 55 years outstanding we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including fees.
Mrs Ashleigh Roux was assigned a lease of a one bedroom flat in Solihull in May 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Comparative flats in Solihull with a long lease were valued about £300,000. The average ground rent payable was £50 invoiced monthly. The lease finished on 9 May 2101. Considering the 75 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.