With a domestic leasehold property in Killingworth, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are less than eighty years remaining. Anyone in Killingworth with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has below 80 years left, under the relevant statute the landlord can calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Killingworth with over one hundred years outstanding 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Killingworth,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Killingworth valuers.
In the wake of 9 months of lengthy negotiations with the landlord of her garden flat in Killingworth, Caitlin started the lease extension process as the eighty year mark was fast nearing. The legal work was finalised in February 2009. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were e-mailed by Mr C Moore who, having moved into a basement flat in Killingworth in September 2005. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative premises in Killingworth with an extended lease were worth £240,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease end date was on 28 September 2087. Given that there were 62 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus costs.
Dr Milo Lefebvre completed a basement apartment in Killingworth in November 1999. The question was if we could approximate the price could be for a ninety year lease extension. Identical homes in Killingworth with a long lease were worth £174,200. The average ground rent payable was £55 billed quarterly. The lease ended on 17 March 2076. Given that there were 51 years remaining we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of expenses.