With a domestic leasehold premises in Kings Norton, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are fewer than 80 years remaining. Anyone in Kings Norton with a lease nearing 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has below 80 years remaining, under the current statute the landlord is entitled to calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Kings Norton with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
Lease extensions in Kings Norton can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 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.
16 months ago Arthur, came very close to the eighty-year mark with the lease on his purpose- built flat in Kings Norton. In buying his home two decades ago, the length of the lease was of no bearing. Luckily, he realised he would soon be paying an inflated amount for a lease extension. Arthur was able to extend his lease just under the wire last September. Arthur and the landlord eventually agreed on an amount of £6,000 . If the lease had descended lower than 80 years, the premium would have become more costly by a minimum £1,050.
In 2010 we were approached by Mr Elijah Watson who, having completed a studio apartment in Kings Norton in October 2010. The question was if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Comparative residencies in Kings Norton with a long lease were worth £243,000. The mid-range amount of ground rent was £65 invoiced per annum. The lease concluded in 2088. Considering the 63 years remaining we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of legals.
Ms Alexandra Smith took over the lease of a purpose-built apartment in Kings Norton in August 1996. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar flats in Kings Norton with a long lease were in the region of £181,600. The average amount of ground rent was £55 invoiced per annum. The lease came to a finish in 2077. Having 52 years remaining we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus costs.