Chances are that if you own a flat in Kings Norton you actually own a long leasehold interest over your property
Leasehold properties in Kings Norton with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Regardless of whether you are a tenant or a freeholder in Kings Norton,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 in-depth market knowledge and the close ties they enjoy with Kings Norton valuers.
Toby was the the leasehold proprietor of a high value apartment in Kings Norton being marketed with a lease of a few days over 72 years left. Toby on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Toby to invoke his statutory right. Toby procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Last Winter we were contacted by Ms Shannon James , who purchased a one bedroom flat in Kings Norton in August 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Identical properties in Kings Norton with an extended lease were valued about £166,800. The mid-range ground rent payable was £55 billed every twelve months. The lease lapsed on 19 May 2076. Taking into account 50 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus costs.
Last August we were e-mailed by Mr G Cooper , who was assigned a lease of a studio apartment in Kings Norton in September 2012. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparative homes in Kings Norton with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ran out in 2096. Having 70 years remaining we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.