As the length of the unexpired term of a Killay domestic lease diminished so does its value and therefore the value of your property. If the residual term has, over 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. Most flat owners in Killay will meet the qualifying criteria; nevertheless a conveyancer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Virgin |
The lawyers that we work with undertake Killay 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 lawyer we work with provide it.
Following unsuccessful correspondence with the freeholder of her one bedroom flat in Killay, Yasmin commenced the lease extension process as the eighty year mark was swiftly advancing. The transaction was concluded in September 2012. The landlord’s costs were kept to an absolute minimum.
In 2011 we were contacted by Mr and Mrs. S Nguyen who, having purchased a purpose-built flat in Killay in June 2007. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Killay with a long lease were in the region of £216,000. The mid-range ground rent payable was £60 collected annually. The lease terminated in 2084. Having 58 years left we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus costs.
Mr Elijah Wright bought a one bedroom flat in Killay in July 2006. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparable premises in Killay with a long lease were worth £200,000. The mid-range ground rent payable was £50 billed every twelve months. The lease terminated in 2104. Given that there were 78 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.