The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Kidderminster can extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Kidderminster lease extension. Shelving that expense now simply escalates the premium you will ultimately be required to pay to extend the lease.
Leasehold residencies in Kidderminster with over 100 years outstanding on the lease are sometimes 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 reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Engaging our service gives you enhanced control over the value of your Kidderminster leasehold, as your property will be more valuable and marketable in relation to the 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.
Last October Archie, started to get near to the eighty-year mark with the lease on his basement apartment in Kidderminster. In buying his flat two decades ago, the lease term was of no significance. As luck would have it, he realised he would soon be paying an inflated amount for a lease extension. Archie was able to extend his lease just under the wire in April. Archie and the landlord in the end agreed on an amount of £5,000 . If he had missed the deadline, the price would have escalated by a minimum £950.
Last Spring we were contacted by Ms U Sánchez , who acquired a basement apartment in Kidderminster in April 2003. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar residencies in Kidderminster with 100 year plus lease were in the region of £191,400. The mid-range ground rent payable was £55 invoiced yearly. The lease came to a finish on 10 April 2080. Given that there were 54 years left we approximated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 exclusive of costs.
In 2010 we were approached by Mr and Mrs. G Walker who, having took over the lease of a newly refurbished flat in Kidderminster in July 1998. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Kidderminster with an extended lease were in the region of £295,000. The average amount of ground rent was £45 billed yearly. The lease terminated on 1 November 2100. Given that there were 74 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.