Unfortunately that a Kings Heath residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Kings Heath property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term falls below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Kings Heath will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold residencies in Kings Heath with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Santander | |
| Virgin |
Engaging our service will provide you better control over the value of your Kings Heath leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Alfie was the the leasehold owner of a high value apartment in Kings Heath being marketed with a lease of a few days over sixty years outstanding. Alfie on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
In 2013 we were approached by Mr and Mrs. I Sharif who, having bought a ground floor apartment in Kings Heath in June 2010. The question was if we could approximate the premium would be to prolong the lease by ninety years. Comparative residencies in Kings Heath with an extended lease were in the region of £270,000. The average ground rent payable was £65 invoiced every twelve months. The lease expiry date was in 2094. Taking into account 68 years remaining we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.
In 2013 we were called by Mr G Richardson who, having purchased a newly refurbished flat in Kings Heath in January 2006. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparative premises in Kings Heath with an extended lease were in the region of £208,600. The average ground rent payable was £60 invoiced every twelve months. The lease came to a finish in 2083. Considering the 57 years remaining we calculated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus expenses.