On the balance of probabilities if you own a flat in Killay you actually own a long leasehold interest over your property
Leasehold premises in Killay with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Killay can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Killay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Daniel owned a high value flat in Killay on the market with a lease of a few days over 61 years outstanding. Daniel informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Mr and Mrs. J Johnson acquired a ground floor apartment in Killay in October 2009. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative properties in Killay with an extended lease were valued about £265,200. The average ground rent payable was £65 collected yearly. The lease expired in 2091. Having 66 years as a residual term we estimated the premium to the landlord for the lease extension to be within £15,200 and £17,600 plus expenses.
Mrs T Wilson acquired a ground floor flat in Killay in April 2003. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Identical premises in Killay with an extended lease were in the region of £201,200. The average amount of ground rent was £55 billed monthly. The lease ran out in 2081. Having 56 years left we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including expenses.