Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Killamarsh. Clearly, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the property needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible leaseholders in Killamarsh have the right to extend the lease for a further ninety years in accordance with statute. Do give due consideration before putting off your Killamarsh lease extension. Putting off the cost now likely increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Halifax | |
| Skipton Building Society | |
| The Mortgage Works |
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 conveyancing solicitor we work with provide it.
Harrison owned a high value apartment in Killamarsh being marketed with a lease of just over 61 years left. Harrison on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harrison to invoke his statutory right. Harrison procured expert advice and secured an acceptable deal informally and sell the flat.
Mr and Mrs. F Green purchased a first floor flat in Killamarsh in November 1998. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable residencies in Killamarsh with an extended lease were in the region of £216,000. The average ground rent payable was £60 billed yearly. The lease expired in 2084. Considering the 58 years as a residual term we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.
In 2014 we were approached by Dr T White who, having purchased a ground floor flat in Killamarsh in October 2010. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative residencies in Killamarsh with an extended lease were valued about £200,000. The mid-range amount of ground rent was £50 collected monthly. The lease came to a finish on 21 August 2104. Given that there were 78 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.