The market value of a leasehold property in Streetly depends on how long the lease has left to run. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be concluded in advance of the 80 year cut off point. Leasehold Reform legislation enables Streetly qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Streetly with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Streetly lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing unsuccessful correspondence with the landlord of her purpose-built apartment in Streetly, Catherine commenced the lease extension process just as the lease was approaching the critical eighty-year deadline. The lease extension completed in June 2009. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. O Carter moved into a one bedroom apartment in Streetly in May 2006. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar homes in Streetly with an extended lease were valued around £257,800. The mid-range ground rent payable was £65 billed quarterly. The lease concluded on 5 April 2090. Taking into account 65 years unexpired we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus professional charges.
In 2011 we were e-mailed by Mr Ollie Lewis who, having owned a basement apartment in Streetly in January 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Streetly with 100 year plus lease were valued about £191,400. The mid-range ground rent payable was £55 billed quarterly. The lease expired in 2079. Taking into account 54 years unexpired we calculated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including fees.