Chances are that if you own a flat in Kings Heath you actually own a long leasehold interest over your property
Leasehold residencies in Kings Heath with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Kings Heath,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 Kings Heath valuers.
During the course of the last few months Sebastian, came precariously close to the 80-year threshold with the lease on his ground floor apartment in Kings Heath. In buying his property 19 years previously, the length of the lease was of no relevance. by good luck, he noticed he needed to take action soon on Extending the lease. Sebastian was able to extend his lease just ahead of time in June. Sebastian and the freeholder via the managing agents eventually agreed on a premium of £5,500 . If he had missed the deadline, the sum would have gone up by at least £900.
Last month we were called by Mr and Mrs. D Leroy , who completed a one bedroom apartment in Kings Heath in November 2006. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Comparative residencies in Kings Heath with 100 year plus lease were valued about £267,600. The mid-range ground rent payable was £65 billed annually. The lease expired on 2 March 2093. Considering the 67 years left we estimated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of fees.
Mr and Mrs. R Hill completed a newly refurbished apartment in Kings Heath in March 1999. The question was if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Comparative premises in Kings Heath with an extended lease were worth £201,200. The average amount of ground rent was £55 billed annually. The lease finished in 2082. Given that there were 56 years remaining we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of fees.