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 be at least 75 years plus the term of the mortgage 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. |
Retaining our service will provide you increased control over the value of your Kings Norton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Zachary was the the leasehold owner of a high value flat in Kings Norton on the market with a lease of a few days over 72 years remaining. Zachary on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Zachary to exercise his statutory right. Zachary procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Mr Jake Rose completed a garden flat in Kings Norton in November 2006. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparative premises in Kings Norton with a long lease were valued around £205,000. The average ground rent payable was £50 collected yearly. The lease finished on 26 June 2105. Considering the 79 years remaining we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
In 2013 we were called by Mrs D Gómez who, having owned a ground floor apartment in Kings Norton in May 1999. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Similar residencies in Kings Norton with a long lease were valued around £275,000. The mid-range amount of ground rent was £65 collected yearly. The lease lapsed on 21 September 2094. Taking into account 68 years remaining we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.