Birmingham Lease Extensions

Life in Birmingham:

Birmingham is a booming city in the West Midlands; in fact, it’s the largest in the UK after London. Yet despite its industrial build-up, Birmingham is one of the greenest cities in Europe, with more than 8,600 acres of public open space and parks. Plus, the city’s impressive network of 35 miles of canals surpasses Venice’s 26 miles of waterways!

The increasing popularity of this bustling metropolis has meant a massive demand for the creation of housing, flats and maisonettes. So, if you need to extend your lease in Birmingham, ensure you secure the best deal by working with The Lease Extension Company.

• Population of Birmingham: The population in 2021 was recorded at 1,144,900 (ONS). This area was the most densely populated local authority in the West Midlands.
• Average House Price: Rightmove data reveals that properties in Birmingham had an overall average price of £271,303 over the last year. However, most sales were semi-detached and terraced properties.
• Constituencies in Birmingham: Edgbaston, Erdington, Hall Green, Hodge Hill, Ladywood, Northfield, Perry Barr, Selly Oak, Sutton Coldfield, Yardley.
• Local Authority: The local authority of Birmingham is Birmingham City Council.

Lease Extensions in Birmingham:

Leaseholders in Birmingham have a statutory right to extend their lease by an additional 90 years. There are typically two pathways to gaining a lease extension: the informal (voluntary) route or the formal (statutory) route.

Birmingham City Council, unfortunately, offer very little detail about how to extend your lease. However, individual housing associations may voice their preferences on their websites and leaseholder handbooks.

Nevertheless, we usually advise taking the statutory route at the LEC if you have owned your property for at least two years. This procedure offers significant protection under the Leasehold Reform, Housing and Urban Development Act 1993.

To support you throughout the process, the LEC will provide a professional surveyor and experienced solicitor to get the cheapest premium and the fairest lease terms for your property.

The Lease Extension Process

Look below for an overview of the statutory lease extension procedure.

• Eligibility Check
• Valuation
• Serving the Section 42 Notice
• Receipt of the Section 45 Counter Offer
• Negotiation
• Agreement of Terms
• Registration of your new lease

For further details, please visit our ‘How Long Will My Lease Take?’ article for more information about each step.

Serving the Section 42 Tenant’s Notice

Before your Section 42 notice is drafted, one of our firms of specialist chartered surveyors will value your property for the purpose of the lease extension and identify the likely ‘premium’ (the price of your lease extension) you will pay your freeholder.

Identifying Your Competent Landlord

Our specialist solicitors will also identify the ‘competent landlord’ whose interest in the property is long enough to grant your 90-year lease extension.

Sometimes, this will be the direct landlord or housing management to whom you pay your service charge or ground rent. However, the competent landlord is often the freeholder of the building.

The Leasehold Reform Housing and Urban Development Act 1993 requires leaseholders to serve a Tenant’s Notice (Section 42 notice) on the ‘competent landlord’.

The Section 42 notice commences the lease extension and must include specific legal information. This is a technical legal notice, and it must be correctly drafted and validated to ensure your lease extension is deemed valid.

At The Lease Extension Company, we work with specialist legal firms in this specific area of law, ensuring that your notice is drafted and reviewed by leading experts in this field. The Section 42 notice will be sent to you for approval before it is forwarded to the solicitors, who will serve the notice to the Freeholder on your behalf.

Key Freeholders in Birmingham:

If you bought a former council flat or maisonette, you’ll have a legal agreement with Birmingham City Council. They are the main freeholders in the region.

Birmingham City Council also partners with various housing associations, including Bromford Housing, Castle Vale Community Housing and Platform Housing. The complete list is cited on their website’s ‘Housing Associations’ page.

There are also shared ownership opportunities through organisations like Midland Heart. However, be aware that shared ownership leaseholders will only qualify for the statutory right to extend their lease if they have ‘staircased’ up to 100% ownership.

Finding Your Freeholder:

The details of your Freeholder will be cited in your original lease. If you’re missing this document, you can get a copy of your leaseholder agreement by contacting HM Land Registry or [email protected] for a small fee. As a client of The Lease Extension Company, we can arrange this for you.

How Much Will Your Lease Extension Cost?

Your premium is calculated based on the following factors:

• The value of your property.
• The amount of ground rent you pay and how much it increases over time.
• The number of years remaining on your lease.

The cost can also depend on your route to obtain your lease extension.

• Informal Lease Extensions: Costs are determined and agreed upon directly with your freeholder.
• Statutory Lease Extensions: You are responsible for the valuation and legal costs of both you and your freeholder, plus the premium for the additional years on your lease.

If you’re curious about costs, use our Lease Extension Calculator to estimate your premium.

About Our Fixed Fee Service

At The Lease Extension Company, we take a straightforward approach to this niche area of property law. We develop a detailed plan covering all stages, legal requirements, and expected costs to do this. Your costs are combined into a simple fixed fee, so you know what to expect from the start of the process.

You’ll also receive the support of a skilled surveyor and solicitor to ensure you’re not paying a penny more for your lease extension (premium) than necessary. View a costed example of a Birmingham lease extension within our case studies.

Start Your Lease Extension in Birmingham Today.

Are you considering extending your lease on your Birmingham property? Count on The Lease Extension Company to support you from your initial consultation to the final HM Land Registry title.

Simply get a quote or arrange a free consultation with our experts by filling out our handy online form, calling us on 0800 098 2770 or emailing [email protected].