Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Sutton Coldfield. Inevitably, the term of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Sutton Coldfield have the legal entitlement to extend the lease for a further 90 years under Leasehold Reform legislation. You should give careful attention before delaying your Sutton Coldfield lease extension. Holding off that expense now only increases the price you will eventually have to pay to extend your lease
Leasehold premises in Sutton Coldfield with over 100 years unexpired on the lease are sometimes regarded as a ‘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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Irrespective of whether you are a tenant or a landlord in Sutton Coldfield,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 experience and the close ties they enjoy with Sutton Coldfield valuers.
Last year Nathan, came precariously near to the 80-year threshold with the lease on his studio apartment in Sutton Coldfield. Having bought his property two decades ago, the length of the lease was of no concern. Thankfully, he noticed he needed to take action soon on Extending the lease. Nathan extended the lease just under the wire last August. Nathan and the freeholder via the management company ultimately settled on an amount of £5,000 . If the lease had slid lower than eighty years, the premium would have increased by at least £850.
Last April we were approach by Mr and Mrs. I Campbell , who was assigned a lease of a basement apartment in Sutton Coldfield in August 2003. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparable properties in Sutton Coldfield with an extended lease were in the region of £200,800. The average amount of ground rent was £65 invoiced yearly. The lease terminated on 8 August 2086. Having 60 years left we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of expenses.
Mr E Vincent took over the lease of a studio apartment in Sutton Coldfield in October 2010. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative residencies in Sutton Coldfield with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 billed annually. The lease elapsed in 2097. Considering the 71 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.