The only way is down when it comes to Killamarsh lease terms. Killamarsh leaseholds that have a lease term shorter than 80 years will de-escalate in market price at a rapid rate, and the cost to extend your lease will rise.
Leasehold residencies in Killamarsh with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Killamarsh leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Owen, came precariously near to the 80-year mark with the lease on his ground floor apartment in Killamarsh. In buying his flat 19 years ago, the lease term was of little bearing. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Owen extended the lease at the eleventh hour in July. Owen and the landlord subsequently agreed on a premium of £5,500 . If the lease had fallen lower than eighty years, the amount would have gone up by a minimum £875.
Mr John Thompson moved into a ground floor apartment in Killamarsh in June 1996. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical residencies in Killamarsh with an extended lease were worth £257,800. The average amount of ground rent was £65 invoiced per annum. The lease ran out on 15 July 2091. Considering the 65 years left we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including professional charges.
In 2014 we were e-mailed by Mr and Mrs. H Alexander who, having completed a purpose-built apartment in Killamarsh in February 1996. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative homes in Killamarsh with 100 year plus lease were worth £191,400. The mid-range ground rent payable was £55 billed yearly. The lease expired in 2080. Having 54 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 not including professional charges.