The re-sale value of a leasehold property in Kings Heath is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be addressed in advance of the 80 year mark. Leasehold Reform legislation enables Kings Heath qualifying lessees to obtain a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Kings Heath with over 100 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Skipton Building Society | |
| Yorkshire Building Society |
Using 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 respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Toby, came dangerously near to the 80-year threshold with the lease on his first floor apartment in Kings Heath. Having purchased his property twenty years ago, the length of the lease was of no importance. by good luck, he noticed he would soon be paying way over the odds for a lease extension. Toby arranged for a lease extension just under the wire last July. Toby and the freeholder eventually settled on the final figure of £5,000 . If the lease had descended below eighty years, the amount would have increased by at least £1,100.
Dr C González moved into a one bedroom flat in Kings Heath in March 2009. The question was if we could approximate the price could be to prolong the lease by 90 years. Comparative homes in Kings Heath with an extended lease were valued about £285,000. The average amount of ground rent was £45 billed every twelve months. The lease lapsed on 14 August 2098. Taking into account 72 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.
In 2009 we were e-mailed by Ms Rebecca Cooper who, having completed a ground floor flat in Kings Heath in August 2011. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Identical properties in Kings Heath with an extended lease were in the region of £233,200. The average ground rent payable was £60 collected quarterly. The lease terminated in 2087. Given that there were 61 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 not including fees.