On the balance of probabilities where you own a flat in Killamarsh you actually own a long leasehold interest over your property
Leasehold premises in Killamarsh with more than one hundred years remaining 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Killamarsh can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Killamarsh lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy discussions with the landlord of her one bedroom apartment in Killamarsh, Abigail started the lease extension process as the 80 year mark was rapidly nearing. The lease extension was concluded in November 2012. The freeholder’s costs were negotiated to a tad over five hundred pounds.
Last Autumn we were approach by Mr and Mrs. C Young , who completed a one bedroom apartment in Killamarsh in February 2005. The question was if we could approximate the premium would be to extend the lease by 90 years. Identical properties in Killamarsh with 100 year plus lease were valued around £295,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease came to a finish on 3 February 2099. Taking into account 74 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.
Dr Jasper Reed owned a purpose-built apartment in Killamarsh in October 2010. The dilemma was if we could approximate the premium could be to extend the lease by a further 90 years. Comparable flats in Killamarsh with a long lease were worth £243,000. The average ground rent payable was £65 collected per annum. The lease ran out on 15 August 2088. Considering the 63 years outstanding we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including fees.