The value of Killamarsh leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the remaining term is below than 80 years
Leasehold premises in Killamarsh with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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 also be not less than 75 years at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Killamarsh,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 Killamarsh valuers.
Adam owned a high value apartment in Killamarsh being sold with a lease of a few days over 59 years left. Adam on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Adam to invoke his statutory right. Adam procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Dr Amy Cox moved into a ground floor flat in Killamarsh in August 2010. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Similar properties in Killamarsh with 100 year plus lease were valued around £295,000. The mid-range amount of ground rent was £50 invoiced annually. The lease concluded on 10 September 2100. Having 75 years outstanding we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.
Dr H Wilson owned a first floor apartment in Killamarsh in November 1999. 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 a further 90 years. Comparable properties in Killamarsh with a long lease were worth £250,400. The mid-range ground rent payable was £65 invoiced yearly. The lease finished on 18 November 2089. Considering the 64 years unexpired we approximated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 not including expenses.