Stop! Your Lease Extension in Streetly Could Be FREE

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Many leaseholders in Streetly are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Streetly has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should commence your Streetly lease extension

Main reasons to start your Streetly lease extension today:

A Streetly leasehold property depreciates with the years remaining on the lease.

The market value of Streetly leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the remaining term is less than eighty years

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Banks and Building Societies may not lend with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to get concerned at around 75 years. This may cause difficulties once you come to sell or remortgage your flat as it will be practically unmortgageable. You may not have an imminent plan to sell but when you do your purchaser will have to hold off for 2 years before being able to initiate the legal procedures for a lease extension.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

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;
Chelsea 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.
Coventry Building Society 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.
Skipton Building Society 85 years from the date of completion of the mortgage

For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

Get in touch with one of our Streetly lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Streetly,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Streetly valuers.

Streetly Lease Extension Case Summaries:

Seth, Streetly, Birmingham

Last October Seth, started to get close to the 80-year mark with the lease on his basement apartment in Streetly. Having purchased his property twenty years ago, the length of the lease was of little significance. Fortunately, he realised he needed to take steps soon on Extending the lease. Seth arranged for a lease extension at the eleventh hour last April. Seth and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If the lease had slipped lower than eighty years, the sum would have escalated by a minimum £1,000.

Streetly case:

Last Christmas we were contacted by Dr S Kelly , who purchased a purpose-built flat in Streetly in November 1995. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative properties in Streetly with a long lease were worth £205,000. The average amount of ground rent was £50 collected every twelve months. The lease terminated in 2105. Taking into account 79 years as a residual term we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.

Streetly case:

In 2012 we were e-mailed by Mr and Mrs. S Bell who, having took over the lease of a purpose-built flat in Streetly in November 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparable homes in Streetly with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £65 collected annually. The lease terminated in 2094. Considering the 68 years left we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.