The re-sale value of a leasehold property in Kings Norton is impacted by how long the lease has remaining. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that all matters can be concluded in advance of the eighty year mark. Statute entitles Kings Norton qualifying lessees to an additional term of ninety years over and above the remaining term, at a notional rent (no ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| 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 |
| 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 obtain professional help from a conveyancer and valuer with experience in this area.
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 in-depth market knowledge procuring 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.
George was the the leasehold proprietor of a high value flat in Kings Norton on the market with a lease of just over 61 years left. George informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be due on a lease extension were George to exercise his statutory right. George obtained expert legal guidance and secured satisfactory resolution without going to tribunal and sell the property.
Mr Y Vincent acquired a ground floor flat in Kings Norton in September 2006. The question was if we could approximate the premium could be for a ninety year extension to my lease. Similar premises in Kings Norton with 100 year plus lease were worth £205,000. The average ground rent payable was £50 billed annually. The lease lapsed on 10 February 2105. Taking into account 79 years left we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.
In 2014 we were called by Dr J Patel who, having moved into a garden apartment in Kings Norton in April 1999. The dilemma was if we could estimate the premium would be to prolong the lease by ninety years. Identical premises in Kings Norton with a long lease were valued about £275,000. The average amount of ground rent was £65 invoiced yearly. The lease elapsed in 2094. Considering the 68 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.