It’s a harsh certainty that a Kings Heath residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Kings Heath property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be due. Most leasehold owners in Kings Heath will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises in Kings Heath with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Virgin | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Kings Heath,the lease extension solicitors 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 Kings Heath valuers.
George owned a conversion apartment in Kings Heath on the market with a lease of a few days over 59 years left. George informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were George to exercise his statutory right. George obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
Last month we were approach by Mr and Mrs. E White , who completed a basement flat in Kings Heath in May 2007. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar premises in Kings Heath with 100 year plus lease were valued around £210,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease came to a finish on 4 June 2106. Taking into account 80 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Mr D Lefèvre owned a one bedroom apartment in Kings Heath in January 2004. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Kings Heath with an extended lease were valued around £275,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease end date was on 5 February 2095. Given that there were 69 years as a residual term we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.