With a domestic leasehold premises in Kings Norton, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Residents in Kings Norton with a lease approaching 81 years remaining should seriously think of extending it without delay. Once a lease has under 80 years remaining, under the current legislation the freeholder is entitled to calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 Norton,the lease extension lawyers that we work with will always be prepared 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.
Ali was the the leasehold proprietor of a high value apartment in Kings Norton on the market with a lease of just over 59 years remaining. Ali on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were Ali to exercise his statutory right. Ali procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. H Moore took over the lease of a one bedroom apartment in Kings Norton in July 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Similar homes in Kings Norton with 100 year plus lease were worth £216,000. The mid-range amount of ground rent was £60 collected quarterly. The lease expired in 2083. Considering the 58 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.
In 2009 we were phoned by Dr F López who, having took over the lease of a garden apartment in Kings Norton in November 2002. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative flats in Kings Norton with an extended lease were worth £200,000. The average ground rent payable was £50 invoiced every twelve months. The lease expired on 19 May 2103. Considering the 78 years outstanding we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.