There is no doubt about it a leasehold flat or house in Kenilworth is a wasting asset as a result of the shortening lease. Where the residual term has, more than 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Kenilworth will qualify for this right; nevertheless a conveyancer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Kenilworth with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service will provide you increased control over the value of your Kenilworth leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Ibrahim, came critically close to the eighty-year threshold with the lease on his two bedroom apartment in Kenilworth. In buying his home twenty years ago, the unexpired term was of no bearing. As luck would have it, he noticed he needed to take steps soon on a lease extension. Ibrahim extended the lease at the eleventh hour last March. Ibrahim and the freeholder subsequently settled on an amount of £6,000 . If he not met the deadline, the price would have become more exhorbitant by a minimum £1,050.
Dr G Rogers completed a basement apartment in Kenilworth in April 1999. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Similar flats in Kenilworth with 100 year plus lease were valued around £250,000. The average amount of ground rent was £50 invoiced monthly. The lease finished on 24 June 2094. Having 68 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Mr and Mrs. B Morel took over the lease of a garden flat in Kenilworth in June 2008. The question was if we could approximate the price would likely be for a 90 year lease extension. Identical properties in Kenilworth with a long lease were in the region of £285,000. The average amount of ground rent was £55 collected monthly. The lease lapsed in 2105. Considering the 79 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.