Unfortunately that a Kings Norton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Kings Norton property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Kings Norton will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold premises in Kings Norton with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Kings Norton can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
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 Norton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Hugo was the the leasehold proprietor of a studio flat in Kings Norton being sold with a lease of a little over fifty eight years unexpired. Hugo informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Hugo to exercise his statutory right. Hugo procured expert advice and secured an acceptable deal informally and readily saleable.
Dr Stanley Brooks moved into a recently refurbished apartment in Kings Norton in January 2001. We are asked if we could estimate the price could be for a ninety year extension to my lease. Similar residencies in Kings Norton with an extended lease were valued around £181,600. The average amount of ground rent was £55 collected every twelve months. The lease finished on 14 June 2078. Considering the 52 years unexpired we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of expenses.
In 2012 we were called by Mr and Mrs. B Reed who, having completed a first floor apartment in Kings Norton in November 2005. The question was if we could estimate the premium would be for a 90 year extension to my lease. Similar flats in Kings Norton with an extended lease were in the region of £285,000. The average ground rent payable was £45 collected annually. The lease finished in 2098. Having 72 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.