With a domestic leasehold property in Killamarsh, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Anyone in Killamarsh with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once a lease has under eighty years left, under the current statute the freeholder is entitled to calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Killamarsh with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Killamarsh,the lease extension solicitors 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.
In 2014 Joshua, started to get near to the 80-year mark with the lease on his one bedroom flat in Killamarsh. Having purchased his property 18 years previously, the unexpired term was of minimal bearing. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Joshua was able to extend his lease just under the wire last September. Joshua and the freeholder via the managing agents in the end agreed on an amount of £5,000 . If the lease had dropped lower than eighty years, the figure would have become more exhorbitant by at least £1,000.
Last month we were e-mailed by Mr and Mrs. I Rogers , who completed a garden flat in Killamarsh in January 2002. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical premises in Killamarsh with an extended lease were in the region of £225,800. The average amount of ground rent was £60 invoiced annually. The lease came to a finish in 2086. Having 60 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 not including costs.
In 2012 we were called by Mr and Mrs. C Cox who, having took over the lease of a first floor apartment in Killamarsh in April 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Identical properties in Killamarsh with a long lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease concluded in 2106. Considering the 80 years as a residual term we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.