It’s an underpublicised certainty that a Killamarsh residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Killamarsh property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Killamarsh will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
Henry owned a studio flat in Killamarsh on the market with a lease of a few days over 59 years unexpired. Henry on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Henry to exercise his statutory right. Henry obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the property.
In 2010 we were approached by Mrs O Johnson who, having was assigned a lease of a studio apartment in Killamarsh in October 1997. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar homes in Killamarsh with an extended lease were worth £210,000. The average amount of ground rent was £50 billed quarterly. The lease termination date was in 2106. Taking into account 80 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Dr M Sharif was assigned a lease of a ground floor flat in Killamarsh in March 2011. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar properties in Killamarsh with an extended lease were worth £275,000. The mid-range ground rent payable was £45 billed per annum. The lease came to a finish on 4 May 2095. Having 69 years left we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.