Kings Heath leases on residential properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Kings Heath will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not be entitled. There are also strict timetables and steps to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Kings Heath with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Kings Heath,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kings Heath valuers.
Subsequent to protracted negotiations with the freeholder of her two bedroom flat in Kings Heath, Phoebe commenced the lease extension process just as the lease was nearing the all-important 80-year threshold. The transaction was finalised in August 2014. The freeholder’s fees were negotiated to less than 500 GBP.
Ms Samantha Watson owned a ground floor apartment in Kings Heath in May 1995. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical properties in Kings Heath with an extended lease were valued around £290,000. The mid-range amount of ground rent was £45 collected quarterly. The lease termination date was in 2098. Given that there were 73 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Last Winter we were e-mailed by Mr and Mrs. I Clarke , who was assigned a lease of a recently refurbished flat in Kings Heath in January 2003. The question was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable homes in Kings Heath with a long lease were in the region of £243,000. The average amount of ground rent was £65 billed every twelve months. The lease expired in 2088. Considering the 63 years unexpired we estimated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus fees.