The value of Kings Norton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the remaining term is less than eighty years
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in Kings Norton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kings Norton valuers.
Callum was the the leasehold owner of a conversion flat in Kings Norton being sold with a lease of fraction over sixty years left. Callum on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Callum to invoke his statutory right. Callum obtained expert advice and secured an acceptable resolution informally and sell the property.
Mrs Chantelle Watson acquired a one bedroom flat in Kings Norton in November 2012. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar homes in Kings Norton with 100 year plus lease were valued about £285,000. The average amount of ground rent was £45 invoiced per annum. The lease lapsed on 25 October 2097. Given that there were 72 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
In 2014 we were approached by Mr and Mrs. H Vincent who, having bought a basement flat in Kings Norton in March 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Kings Norton with an extended lease were valued about £233,200. The mid-range amount of ground rent was £60 invoiced annually. The lease terminated in 2086. Considering the 61 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of expenses.