Kings Heath leases on residential properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease drops below eighty years - otherwise a higher amount will be payable. Leasehold owners in Kings Heath will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some cases you may not be entitled. There are prescribed deadlines and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| Skipton Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
The conveyancers that we work with procure Kings Heath lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In recent months Jake, started to get near to the 80-year threshold with the lease on his studio flat in Kings Heath. Having bought his property two decades ago, the unexpired term was of minimal importance. Thankfully, he recognised he would imminently be paying way over the odds for Extending the lease. Jake extended the lease just in the nick of time in July. Jake and the landlord subsequently settled on a premium of £6,000 . If he failed to meet the deadline, the amount would have escalated by a minimum £975.
In 2013 we were e-mailed by Mr and Mrs. R Bailey who, having owned a one bedroom apartment in Kings Heath in September 2007. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative properties in Kings Heath with an extended lease were in the region of £250,400. The mid-range ground rent payable was £65 collected monthly. The lease elapsed in 2090. Taking into account 64 years unexpired we estimated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including costs.
Last Winter we were called by Mrs V Harris , who acquired a garden apartment in Kings Heath in August 2000. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Identical premises in Kings Heath with 100 year plus lease were worth £184,000. The mid-range amount of ground rent was £55 billed monthly. The lease concluded on 19 August 2079. Having 53 years left we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus fees.