It’s a harsh truth that a Kings Norton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Kings Norton property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining slips under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Kings Norton will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold residencies in Kings Norton with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Halifax | |
| National Westminster Bank | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers that we work with procure Kings Norton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last October Charlie, came perilously close to the 80-year mark with the lease on his ground floor apartment in Kings Norton. Having purchased his home 18 years ago, the length of the lease was of minimal interest. Thankfully, he became aware that he needed to take action soon on Extending the lease. Charlie was able to extend his lease at the eleventh hour last July. Charlie and the freeholder subsequently settled on a premium of £5,500 . If he had missed the deadline, the amount would have escalated by at least £1,000.
In 2010 we were e-mailed by Mr Y Simon who, having moved into a one bedroom flat in Kings Norton in August 2000. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar premises in Kings Norton with a long lease were in the region of £257,800. The average ground rent payable was £65 collected monthly. The lease came to a finish on 28 June 2091. Having 65 years as a residual term we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus costs.
Last Summer we were e-mailed by Mr Eli Wood , who completed a first floor flat in Kings Norton in November 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparable premises in Kings Norton with 100 year plus lease were worth £191,400. The mid-range ground rent payable was £55 invoiced per annum. The lease elapsed in 2080. Considering the 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of expenses.