It’s an underpublicised truth that a Kings Norton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Kings Norton property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining falls under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Kings Norton will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Halifax | |
| Leeds Building Society | |
| Royal Bank of Scotland |
Engaging our service gives you better control over the value of your Kings Norton leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Leo was the the leasehold proprietor of a conversion flat in Kings Norton on the market with a lease of a few days over 59 years left. Leo informally approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Leo to invoke his statutory right. Leo procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2013 we were phoned by Dr U Richardson who, having took over the lease of a one bedroom flat in Kings Norton in February 2010. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical residencies in Kings Norton with 100 year plus lease were valued about £233,200. The mid-range ground rent payable was £60 collected per annum. The lease elapsed on 15 November 2087. Given that there were 61 years outstanding we estimated the premium to the landlord for the lease extension to be within £22,800 and £26,400 plus expenses.
In 2010 we were called by Mr and Mrs. T Mitchell who, having moved into a studio flat in Kings Norton in February 2004. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable properties in Kings Norton with an extended lease were in the region of £166,800. The average amount of ground rent was £55 billed every twelve months. The lease concluded on 22 February 2076. Given that there were 50 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including legals.