The value of Killamarsh leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the remaining term is below than 80 years
Leasehold premises in Killamarsh with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Seth, came very near to the eighty-year mark with the lease on his studio apartment in Killamarsh. Having purchased his flat 19 years ago, the lease term was of little bearing. Thankfully, he noticed he would imminently be paying an inflated amount for Extending the lease. Seth arranged for a lease extension just in the nick of time in April. Seth and the landlord who owned the flat above in the end settled on an amount of £5,000 . If the lease had fallen below eighty years, the price would have gone up by at least £1,050.
In 2014 we were approached by Mr and Mrs. B Edwards who, having completed a basement flat in Killamarsh in March 1996. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Comparable properties in Killamarsh with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £50 collected every twelve months. The lease finished on 5 November 2100. Given that there were 75 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.
Mr and Mrs. E Gray was assigned a lease of a ground floor apartment in Killamarsh in September 1999. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Killamarsh with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 invoiced monthly. The lease lapsed on 23 September 2089. Having 64 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 plus fees.