Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Streetly. Inevitably, the period of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Streetly have the legal entitlement to extend the lease for an additional ninety years under statute. You should give careful consideration before putting off your Streetly lease extension. Putting off the cost now likely increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 Streetly can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in this area.
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 in-depth market knowledge procuring Streetly lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Charlie, came seriously close to the 80-year mark with the lease on his basement flat in Streetly. In buying his flat twenty years previously, the length of the lease was of minimal importance. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Charlie arranged for a lease extension just in the nick of time in March. Charlie and the landlord eventually agreed on sum of £5,500 . If the lease had slipped to less than 80 years, the price would have gone up by a minimum £850.
Last Winter we were approach by Mr and Mrs. L Campbell , who completed a studio flat in Streetly in November 2000. The question was if we could estimate the price could be to extend the lease by ninety years. Similar premises in Streetly with a long lease were valued about £184,000. The mid-range ground rent payable was £55 collected every twelve months. The lease ran out on 14 January 2078. Taking into account 53 years left we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.
Last Summer we were approach by Mrs S Morel , who completed a basement flat in Streetly in May 1999. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparable premises in Streetly with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed quarterly. The lease terminated on 21 March 2098. Considering the 73 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.