As the the remaining lease term of a Kings Norton domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, over one hundred years to run then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Most flat owners in Kings Norton will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Kings Norton leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Sebastian, came very near to the 80-year mark with the lease on his two bedroom apartment in Kings Norton. Having bought his home 18 years previously, the lease term was of minimal bearing. Luckily, he realised he needed to take action soon on a lease extension. Sebastian was able to extend his lease just ahead of time in January. Sebastian and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If he had missed the deadline, the premium would have become more exhorbitant by at least £950.
Mr and Mrs. B Stewart moved into a garden flat in Kings Norton in October 1995. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Similar residencies in Kings Norton with an extended lease were valued about £200,000. The mid-range amount of ground rent was £50 collected per annum. The lease came to a finish on 22 October 2103. Considering the 78 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.
Mr and Mrs. I White bought a basement flat in Kings Norton in May 2011. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparative residencies in Kings Norton with an extended lease were valued about £267,600. The average amount of ground rent was £65 collected quarterly. The lease concluded in 2092. Given that there were 67 years remaining we approximated the premium to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of expenses.