Kings Norton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Kings Norton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Kings Norton you should see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Kings Norton with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Lease extensions in Kings Norton can be a difficult process. We recommend you secure 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 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.
In the wake of eight months of lengthy correspondence with the landlord of her studio apartment in Kings Norton, Olivia initiated the lease extension process just as her lease was coming close to the all-important 80-year deadline. The lease extension was concluded in April 2008. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were e-mailed by Dr Isabella Moore who, having owned a first floor apartment in Kings Norton in November 2010. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative residencies in Kings Norton with an extended lease were valued about £191,400. The average amount of ground rent was £55 billed monthly. The lease concluded on 22 June 2080. Given that there were 54 years unexpired we estimated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 plus fees.
Mr H Rivera purchased a studio apartment in Kings Norton in February 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Kings Norton with an extended lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced annually. The lease finished on 17 August 2100. Considering the 74 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.