Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Killamarsh. Clearly, the period of lease remaining reduces over time. This is often ignored and only becomes a problem when the property needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Killamarsh have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. You should give careful deliberation before delaying your Killamarsh lease extension. Putting off the cost now simply increases the price you will eventually have to pay to extend your lease
Leasehold properties in Killamarsh with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 merit it.
Lender | Requirement |
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Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Halifax | Minimum 70 years from the date of the mortgage. |
National Westminster Bank | Mortgage term plus 30 years. |
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. |
Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors that we work with handle 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.
Thomas was the the leasehold proprietor of a high value apartment in Killamarsh being marketed with a lease of fraction over sixty years left. Thomas informally spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Thomas to invoke his statutory right. Thomas obtained expert advice and was able to make an informed decision and handle with the matter and sell the property.
Ms Jordan González acquired a ground floor apartment in Killamarsh in April 2012. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative premises in Killamarsh with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease came to a finish on 16 January 2098. Given that there were 74 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
Dr Ibrahim Cooper completed a one bedroom apartment in Killamarsh in October 2007. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable properties in Killamarsh with an extended lease were in the region of £243,000. The mid-range ground rent payable was £65 billed yearly. The lease terminated in 2087. Considering the 63 years unexpired we calculated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of legals.