The market value of a leasehold property in Kings Heath depends on how many years the lease has remaining. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that formalities can be finalised well before the 80 year cut off point. Statute entitles Kings Heath qualifying lessees to an additional term of 90 years on top of the existing term, at a nominal rent (zero ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
Engaging our service will provide you increased 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 conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Rory was the the leasehold proprietor of a conversion flat in Kings Heath on the market with a lease of just over sixty years left. Rory informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Rory to invoke his statutory right. Rory procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last January we were approach by Mr Benjamin Roux , who took over the lease of a one bedroom flat in Kings Heath in May 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Kings Heath with 100 year plus lease were valued about £218,400. The average amount of ground rent was £60 collected yearly. The lease concluded in 2085. Having 59 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 not including costs.
Mr E Vincent moved into a studio flat in Kings Heath in August 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Identical homes in Kings Heath with 100 year plus lease were worth £205,000. The average ground rent payable was £50 billed yearly. The lease came to a finish on 25 January 2105. Having 79 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £7,600 and £8,800 plus legals.