The market value of a leasehold property in Kings Norton is impacted by how long the lease has remaining. If it is close to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be finalised prior to the 80 year mark. Leasehold Reform legislation enables Kings Norton qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Kings Norton with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| Santander | |
| Skipton Building Society | |
| Yorkshire Building Society |
Retaining our service gives you better control over the value of your Kings Norton leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Max was the the leasehold owner of a 2 bedroom flat in Kings Norton on the market with a lease of a little over 72 years outstanding. Max on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be due on a lease extension were Max to invoke his statutory right. Max obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Last Summer we were approach by Mr and Mrs. I Moore , who purchased a ground floor flat in Kings Norton in April 2006. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Kings Norton with 100 year plus lease were valued about £290,000. The average ground rent payable was £45 billed annually. The lease lapsed in 2099. Given that there were 73 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
In 2014 we were contacted by Mr and Mrs. B Green who, having bought a basement apartment in Kings Norton in August 2002. The question was if we could approximate the premium could be to extend the lease by ninety years. Identical premises in Kings Norton with 100 year plus lease were worth £240,600. The mid-range ground rent payable was £60 collected every twelve months. The lease lapsed in 2088. Considering the 62 years unexpired we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of fees.