Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Solihull. Inevitably, the length of lease left reduces over time. This is often overlooked and only raises itself as an issue when the residence needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Solihull have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give careful attention before delaying your Solihull lease extension. Holding off that expense now likely increases the price you will ultimately incur for a lease extension
Leasehold residencies in Solihull with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Solihull can be a difficult process. We recommend you secure professional help from a lawyer and surveyor 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 Solihull 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 unsuccessful correspondence with the freeholder of her garden apartment in Solihull, Lauren initiated the lease extension process as the 80 year mark was swiftly nearing. The transaction completed in August 2015. The freeholder’s costs were negotiated to approximately 550 pounds.
Last Summer we were contacted by Mr and Mrs. O Green , who completed a ground floor apartment in Solihull in May 1995. The dilemma was if we could approximate the price could be to extend the lease by ninety years. Identical properties in Solihull with an extended lease were valued around £280,000. The average amount of ground rent was £45 collected annually. The lease finished in 2094. Considering the 69 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.
Last Spring we were called by Dr Louise Bennett , who acquired a recently refurbished apartment in Solihull in November 2002. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable properties in Solihull with an extended lease were worth £216,000. The average amount of ground rent was £60 billed yearly. The lease finished on 5 August 2083. Taking into account 58 years outstanding we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.