Kings Norton Lease Extension - Free Consultation

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Top reasons for Kings Norton lease extension


Why you should start your Kings Norton lease extension today:

Increase your lease and increase your Kings Norton property value

For those whose Kings Norton property is held on a long lease, the message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Kings Norton with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.

Lending institutions may decide not to finance a property with a short lease

Mortgage lenders are less likely to grant a mortgage on a domestic property in Kings Norton with a short lease. Many lenders simply refuse to lend on leases with less than 75 years left.

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;
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Coventry Building Society A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Yorkshire 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.

Get in touch with one of our Kings Norton lease extension solicitors or enfranchisement solicitors

Lease extensions in Kings Norton can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.

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.

Kings Norton Lease Extension Example Cases:

Dexter, Kings Norton, Birmingham,

Dexter was the the leasehold owner of a conversion apartment in Kings Norton on the market with a lease of fraction over 61 years remaining. Dexter informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Dexter to exercise his statutory right. Dexter procured expert advice and secured satisfactory resolution informally and sell the property.

Kings Norton case:

Mr and Mrs. C Vincent acquired a purpose-built apartment in Kings Norton in November 2004. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable premises in Kings Norton with 100 year plus lease were valued about £216,000. The mid-range ground rent payable was £60 billed every twelve months. The lease expired on 1 July 2082. Given that there were 58 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.

Kings Norton case:

In 2014 we were contacted by Mr and Mrs. L Fournier who, having bought a newly refurbished apartment in Kings Norton in October 1999. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparative residencies in Kings Norton with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 collected quarterly. The lease elapsed on 12 January 2102. Taking into account 78 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.