With a domestic leasehold property in Killingworth, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than 80 years remaining. Leasehold owners in Killingworth with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has under eighty years remaining, under the relevant statute the landlord can calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Killingworth with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a landlord in Killingworth,the lease extension lawyers that we work with will always be willing 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 eight months of unsuccessful correspondence with the freeholder of her first floor flat in Killingworth, Rosie started the lease extension process as the 80 year deadline was rapidly nearing. The transaction completed in August 2011. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were e-mailed by Mr and Mrs. V Hall who, having moved into a one bedroom apartment in Killingworth in May 2003. The question was if we could estimate the premium would likely be to prolong the lease by an additional years. Identical residencies in Killingworth with a long lease were in the region of £225,800. The mid-range amount of ground rent was £60 invoiced quarterly. The lease concluded on 24 October 2086. Taking into account 60 years remaining we estimated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of expenses.
Last year we were phoned by Ms M Davies , who moved into a one bedroom flat in Killingworth in August 2007. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical premises in Killingworth with 100 year plus lease were valued about £210,000. The mid-range ground rent payable was £50 collected yearly. The lease end date was on 3 October 2106. Taking into account 80 years remaining we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.