Killamarsh residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Killamarsh,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Killamarsh valuers.
Last October Harvey, came seriously near to the 80-year mark with the lease on his garden flat in Killamarsh. Having purchased his property two decades ago, the lease term was of minimal bearing. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Harvey arranged for a lease extension just under the wire in August. Harvey and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If he not met the deadline, the premium would have gone up by at least £900.
In 2011 we were phoned by Mr C Patel who, having took over the lease of a studio flat in Killamarsh in February 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Killamarsh with 100 year plus lease were worth £208,600. The average ground rent payable was £60 invoiced yearly. The lease ended in 2083. Taking into account 57 years unexpired we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including expenses.
Mrs Gemma Martínez completed a first floor flat in Killamarsh in April 2003. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative flats in Killamarsh with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced monthly. The lease lapsed on 20 February 2103. Having 77 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.