On the balance of probabilities where you own a flat in Kings Norton you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective 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 experience and the close ties they enjoy with Kings Norton valuers.
18 months ago Arthur, came dangerously close to the 80-year threshold with the lease on his basement apartment in Kings Norton. Having purchased his flat two decades ago, the lease term was of minimal importance. As luck would have it, he became aware that he would imminently be paying way over the odds for a lease extension. Arthur was able to extend his lease at the eleventh hour last August. Arthur and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If he not met the deadline, the amount would have increased by at least £975.
Mrs Millie Lewis bought a newly refurbished apartment in Kings Norton in November 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Kings Norton with 100 year plus lease were valued about £285,000. The average ground rent payable was £45 collected quarterly. The lease ran out on 19 May 2096. Considering the 71 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
Mr and Mrs. A Jones was assigned a lease of a basement apartment in Kings Norton in February 2007. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Identical properties in Kings Norton with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 billed every twelve months. The lease came to a finish on 2 April 2085. Having 60 years outstanding we calculated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 not including costs.