As the the remaining lease term of a Kings Norton residential lease decreases so does its value and therefore the value of your property. If the lease has, over one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. The majority of flat owners in Kings Norton will meet the qualifying criteria; nevertheless a lawyer can confirm whether 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 conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Kings Norton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kings Norton valuers.
Following protracted correspondence with the freeholder of her garden apartment in Kings Norton, Shannon initiated the lease extension process as the 80 year threshold was rapidly advancing. The transaction was finalised in April 2008. The freeholder’s fees were kept to an absolute minimum.
Last August we were e-mailed by Dr L Bailey , who moved into a studio flat in Kings Norton in June 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative homes in Kings Norton with 100 year plus lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced yearly. The lease elapsed in 2079. Considering the 54 years remaining we approximated the premium to the landlord for the lease extension to be within £34,200 and £39,600 plus fees.
Last Christmas we were called by Mr and Mrs. T Howard , who acquired a studio apartment in Kings Norton in July 1997. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Identical residencies in Kings Norton with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 billed quarterly. The lease came to a finish on 18 February 2099. Taking into account 74 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.