The market value of Kidderminster leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is less than eighty years
Leasehold residencies in Kidderminster with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service will provide you increased control over the value of your Kidderminster leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Liam owned a high value flat in Kidderminster on the market with a lease of a little over 59 years remaining. Liam informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Liam to exercise his statutory right. Liam procured expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
Mrs C Collins purchased a first floor flat in Kidderminster in July 2007. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative flats in Kidderminster with a long lease were valued around £201,200. The average ground rent payable was £55 collected every twelve months. The lease finished in 2081. Taking into account 56 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
Last Winter we were phoned by Ms Y Allen , who took over the lease of a ground floor apartment in Kidderminster in June 2008. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Comparative homes in Kidderminster with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 billed monthly. The lease ended in 2101. Taking into account 76 years left we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.