Unfortunately that a Kings Norton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Kings Norton property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Kings Norton will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Kings Norton with more than one hundred years left 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Kings Norton,the lease extension solicitors that we work with will always be willing 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.
Blake owned a studio apartment in Kings Norton on the market with a lease of a few days over 61 years left. Blake informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Blake to exercise his statutory right. Blake obtained expert advice and secured satisfactory deal informally and readily saleable.
Dr U Howard was assigned a lease of a garden apartment in Kings Norton in March 2003. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable properties in Kings Norton with 100 year plus lease were worth £267,600. The average ground rent payable was £65 invoiced yearly. The lease expired in 2091. Having 67 years outstanding we approximated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus expenses.
Last Spring we were contacted by Mr and Mrs. G Gunderson , who owned a purpose-built flat in Kings Norton in November 1998. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical premises in Kings Norton with an extended lease were worth £201,200. The mid-range amount of ground rent was £55 collected yearly. The lease finished on 14 April 2080. Taking into account 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of professional charges.