Unfortunately that a Higher Kinnerton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Higher Kinnerton property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Higher Kinnerton will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Higher Kinnerton with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Higher Kinnerton can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Higher Kinnerton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luca was the the leasehold proprietor of a 2 bedroom flat in Higher Kinnerton being sold with a lease of a few days over fifty eight years outstanding. Luca on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Luca to exercise his statutory right. Luca procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. H King owned a first floor flat in Higher Kinnerton in August 2002. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar properties in Higher Kinnerton with 100 year plus lease were valued about £264,000. The mid-range ground rent payable was £60 collected quarterly. The lease termination date was in 2078. Given that there were 53 years outstanding we estimated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of professional charges.
Last Winter we were called by Dr J Khan , who bought a newly refurbished apartment in Higher Kinnerton in June 1995. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative homes in Higher Kinnerton with 100 year plus lease were valued about £220,400. The mid-range amount of ground rent was £45 collected monthly. The lease elapsed in 2089. Considering the 64 years unexpired we approximated the premium to the landlord for the lease extension to be between £16,200 and £18,600 exclusive of legals.