The only way is down when it comes to Kings Heath lease terms. Kings Heath flats that have a residual term shorter than eighty years will de-escalate in market price at a rapid rate, and the cost to extend your lease will increase.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Kings Heath can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Kings Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Kai, started to get close to the eighty-year mark with the lease on his studio flat in Kings Heath. In buying his property twenty years ago, the lease term was of no concern. by good luck, he realised he would soon be paying an inflated amount for a lease extension. Kai arranged for a lease extension just ahead of time last January. Kai and the landlord in the end agreed on sum of £6,000 . If he failed to meet the deadline, the sum would have become more exhorbitant by a minimum £1,100.
In 2014 we were called by Mrs Kelsey Howard who, having purchased a first floor flat in Kings Heath in March 2002. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Comparable residencies in Kings Heath with a long lease were in the region of £243,000. The mid-range ground rent payable was £65 collected monthly. The lease expiry date was on 23 November 2089. Given that there were 63 years outstanding we estimated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus professional charges.
Mr and Mrs. A Michel purchased a first floor flat in Kings Heath in April 2012. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical properties in Kings Heath with 100 year plus lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected annually. The lease ran out in 2078. Having 52 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of legals.