It’s a harsh certainty that a Kings Heath residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Kings Heath property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining slips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Kings Heath will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Kings Heath 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.
Ollie owned a conversion apartment in Kings Heath on the market with a lease of a little over 59 years left. Ollie on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Ollie to invoke his statutory right. Ollie procured expert legal guidance and secured satisfactory resolution without going to tribunal and sell the flat.
Last Winter we were approach by Mr and Mrs. G Rivera , who moved into a purpose-built apartment in Kings Heath in February 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparable premises in Kings Heath with an extended lease were in the region of £248,000. The mid-range ground rent payable was £65 collected annually. The lease terminated in 2088. Taking into account 63 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of fees.
Last Spring we were called by Dr Dylan Hall , who acquired a basement flat in Kings Heath in June 1998. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical residencies in Kings Heath with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded in 2077. Having 52 years outstanding we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including expenses.