Kings Norton leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Kings Norton will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain situations you may not qualify. There are also strict deadlines and formalities to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Kings Norton with over 100 years unexpired 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 home. In such situations there is often little to be gained by buying 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Kings Norton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kings Norton valuers.
Following unsuccessful negotiations with the landlord of her purpose-built flat in Kings Norton, Mollie initiated the lease extension process just as her lease was nearing the critical 80-year threshold. The lease extension was finalised in February 2008. The freeholder’s fees were restricted to approximately 700 GBP.
Ms Abbie Murphy moved into a purpose-built apartment in Kings Norton in July 1998. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Kings Norton with a long lease were in the region of £267,600. The mid-range ground rent payable was £65 billed quarterly. The lease ended in 2092. Having 67 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 plus costs.
Mr and Mrs. H Phillips moved into a basement flat in Kings Norton in November 2001. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Identical residencies in Kings Norton with an extended lease were worth £201,200. The mid-range ground rent payable was £55 billed annually. The lease finished in 2081. Given that there were 56 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus expenses.