Unfortunately that a Killamarsh residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Killamarsh property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term drops below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Killamarsh 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 qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancing solicitors that we work with undertake Killamarsh 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 conveyancer we work with provide it.
Last Christmas Blake, started to get close to the 80-year threshold with the lease on his first floor flat in Killamarsh. In buying his flat 19 years ago, the unexpired term was of no importance. Thankfully, he realised he needed to take action soon on Extending the lease. Blake arranged for a lease extension just ahead of time last July. Blake and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If the lease had slid to less than eighty years, the premium would have increased by at least £850.
Mr Muhammad Ricardo moved into a one bedroom apartment in Killamarsh in May 2003. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative flats in Killamarsh with 100 year plus lease were valued around £205,000. The mid-range ground rent payable was £50 billed yearly. The lease finished on 10 July 2104. Considering the 79 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.
Mr and Mrs. Y Green purchased a first floor apartment in Killamarsh in April 2004. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable residencies in Killamarsh with 100 year plus lease were in the region of £275,000. The average ground rent payable was £65 billed quarterly. The lease termination date was on 22 March 2093. Taking into account 68 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.