Kidderminster leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Kidderminster enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Kidderminster you should investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
The conveyancers that we work with procure Kidderminster 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.
After lengthy negotiations with the landlord of her basement apartment in Kidderminster, Sophie started the lease extension process as the 80 year mark was fast advancing. The transaction was finalised in January 2012. The landlord’s charges were negotiated to less than 550 pounds.
In 2011 we were contacted by Mr and Mrs. C Simon who, having acquired a first floor apartment in Kidderminster in January 1995. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Identical properties in Kidderminster with 100 year plus lease were in the region of £260,200. The average ground rent payable was £65 invoiced yearly. The lease elapsed in 2092. Having 66 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of costs.
In 2009 we were e-mailed by Mrs Amy Flores who, having bought a ground floor flat in Kidderminster in January 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Kidderminster with a long lease were worth £198,800. The mid-range ground rent payable was £55 collected per annum. The lease ended on 12 February 2081. Given that there were 55 years remaining we estimated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus costs.