With a domestic leasehold property in Killamarsh, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than 80 years left. Residents in Killamarsh with a lease nearing 81 years remaining should seriously consider extending it without delay. When a lease has below eighty years remaining, under the current legislation the freeholder is entitled to calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Retaining our service gives you increased control over the value of your Killamarsh leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of lengthy discussions with the landlord of her ground floor apartment in Killamarsh, Tia started the lease extension process as the 80 year deadline was quickly advancing. The lease extension completed in September 2013. The landlord’s costs were kept to an absolute minimum.
Dr Mollie Stewart acquired a ground floor flat in Killamarsh in November 2008. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparable residencies in Killamarsh with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £65 billed per annum. The lease finished on 7 May 2094. Given that there were 68 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.
Mrs Abigail Lewis acquired a one bedroom apartment in Killamarsh in June 1995. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical premises in Killamarsh with 100 year plus lease were in the region of £208,600. The average amount of ground rent was £60 billed every twelve months. The lease came to a finish in 2083. Taking into account 57 years left we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of expenses.