As the the remaining lease term of a Higher Kinnerton residential lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Higher Kinnerton will meet the qualifying criteria; however a conveyancer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Higher Kinnerton with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The lawyers that we work with handle Higher Kinnerton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Following lengthy discussions with the freeholder of her first floor flat in Higher Kinnerton, Leah started the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The transaction completed in April 2013. The freeholder’s costs were negotiated to slightly above 650 pounds.
Mr and Mrs. T Johnson owned a one bedroom apartment in Higher Kinnerton in May 2008. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative flats in Higher Kinnerton with 100 year plus lease were worth £200,800. The average amount of ground rent was £65 invoiced yearly. The lease concluded on 17 May 2086. Having 60 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of costs.
In 2013 we were approached by Mr and Mrs. M Bonnet who, having moved into a studio flat in Higher Kinnerton in October 1999. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Similar flats in Higher Kinnerton with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 billed monthly. The lease termination date was on 8 August 2097. Having 71 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.