Kidderminster leases on residential deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Kidderminster will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Kidderminster with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Kidderminster,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kidderminster valuers.
Last Winter Caleb, came critically near to the eighty-year threshold with the lease on his studio apartment in Kidderminster. Having purchased his property 19 years previously, the lease term was of no importance. by good luck, he noticed he needed to take steps soon on a lease extension. Caleb arranged for a lease extension just in the nick of time in January. Caleb and the freeholder via the managing agents subsequently agreed on the final figure of £5,000 . If he had missed the deadline, the amount would have escalated by a minimum £1,125.
In 2010 we were phoned by Mr Oscar Harris who, having purchased a first floor flat in Kidderminster in May 1997. The question was if we could approximate the price would be for a 90 year lease extension. Identical homes in Kidderminster with a long lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed annually. The lease expired in 2105. Having 80 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
Mr and Mrs. S Harris purchased a one bedroom flat in Kidderminster in January 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Kidderminster with an extended lease were worth £275,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ended in 2094. Taking into account 69 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.