It’s an underpublicised certainty that a Solihull residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Solihull property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Solihull will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Solihull with over 100 years unexpired 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Solihull,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Solihull valuers.
After lengthy correspondence with the freeholder of her first floor flat in Solihull, Rosie commenced the lease extension process just as her lease was coming close to the all-important eighty-year mark. The transaction completed in January 2010. The freeholder’s charges were negotiated to about 700 GBP.
Mr and Mrs. I Bailey bought a garden apartment in Solihull in February 2011. We are asked if we could approximate the price would be to extend the lease by ninety years. Similar residencies in Solihull with 100 year plus lease were in the region of £171,800. The average ground rent payable was £55 billed quarterly. The lease came to a finish on 16 January 2076. Having 50 years remaining we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of professional charges.
Ms N Michel took over the lease of a purpose-built apartment in Solihull in January 2000. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Similar homes in Solihull with a long lease were valued around £280,000. The average amount of ground rent was £45 collected per annum. The lease ended on 28 November 2096. Given that there were 70 years left we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.