Main reasons to commence your Killamarsh lease extension

Main reasons to commence your Killamarsh lease extension today:

Increase your lease and increase your Killamarsh property value

Chances are that where you own a flat in Killamarsh you actually own a long leasehold interest over your property

Killamarsh property with a lease extension is almost the same value as a freehold

Leasehold properties in Killamarsh with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Lenders may decide not to issue a mortgage on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Killamarsh lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Killamarsh,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Killamarsh valuers.

Killamarsh Lease Extension Case Summaries:

Rory, Killamarsh, Derbyshire

Last October Rory, started to get near to the 80-year mark with the lease on his one bedroom flat in Killamarsh. In buying his property 18 years previously, the unexpired term was of minimal concern. Luckily, he realised he would soon be paying an escalated premium for a lease extension. Rory was able to extend his lease just under the wire in April. Rory and the landlord ultimately settled on a premium of £5,500 . If the lease had gone lower than 80 years, the figure would have become more exhorbitant by at least £875.

Killamarsh case:

Last Summer we were approach by Mr and Mrs. Y Gómez , who moved into a ground floor apartment in Killamarsh in March 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative properties in Killamarsh with 100 year plus lease were valued about £191,400. The mid-range ground rent payable was £55 invoiced monthly. The lease ran out on 17 February 2080. Having 54 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 not including costs.

Killamarsh case:

Last Summer we were e-mailed by Mrs Jennifer Petit , who purchased a studio flat in Killamarsh in August 2004. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparative homes in Killamarsh with 100 year plus lease were valued about £295,000. The average amount of ground rent was £45 collected annually. The lease finished in 2100. Considering the 74 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.