With a domestic leasehold premises in Kings Norton, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Anyone in Kings Norton with a lease approaching 81 years left should seriously consider extending it sooner rather than later. When a lease has below eighty years outstanding, under the current Act the freeholder is entitled to calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately 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 decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Kings Norton can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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 in-depth market knowledge dealing with 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.
Following lengthy correspondence with the freeholder of her basement flat in Kings Norton, Isabella commenced the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work was finalised in November 2011. The freeholder’s costs were negotiated to approximately five hundred GBP.
Mr and Mrs. W Robinson moved into a recently refurbished apartment in Kings Norton in January 1997. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Kings Norton with an extended lease were worth £290,000. The average amount of ground rent was £45 collected annually. The lease ended on 1 January 2098. Taking into account 73 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
Dr Rory Patel acquired a one bedroom flat in Kings Norton in July 1999. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar homes in Kings Norton with an extended lease were worth £240,600. The mid-range ground rent payable was £60 collected quarterly. The lease lapsed on 8 September 2087. Having 62 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of expenses.