Killingworth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Killingworth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Killingworth you must investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Killingworth flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is actioned without delay
Leasehold residencies in Killingworth with over 100 years remaining on the lease are often 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 freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Killingworth,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Killingworth valuers.
Liam owned a studio flat in Killingworth being sold with a lease of fraction over 72 years outstanding. Liam informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Liam to invoke his statutory right. Liam obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last February we were approach by Mrs Eleanor Morris , who took over the lease of a first floor apartment in Killingworth in June 2006. The dilemma was if we could approximate the price could be to extend the lease by a further 90 years. Comparative properties in Killingworth with 100 year plus lease were in the region of £198,800. The mid-range amount of ground rent was £55 collected every twelve months. The lease expired on 22 March 2080. Taking into account 55 years remaining we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 plus professional charges.
In 2009 we were contacted by Mr and Mrs. J Brown who, having owned a ground floor apartment in Killingworth in February 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Identical premises in Killingworth with 100 year plus lease were valued around £295,000. The average ground rent payable was £50 billed yearly. The lease lapsed on 1 September 2100. Given that there were 75 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.