Killingworth leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets 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 should see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Killingworth,the lease extension solicitors that we work with will always be happy 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.
16 months ago Benjamin, came seriously close to the eighty-year mark with the lease on his basement apartment in Killingworth. In buying his flat two decades ago, the length of the lease was of minimal relevance. Fortunately, he recognised he would soon be paying an inflated amount for a lease extension. Benjamin was able to extend his lease just under the wire in September. Benjamin and the landlord ultimately agreed on a premium of £5,500 . If he had missed the deadline, the price would have gone up by at least £1,025.
Dr Courtney Murphy purchased a one bedroom apartment in Killingworth in February 2010. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative flats in Killingworth with an extended lease were worth £189,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease ended in 2079. Given that there were 53 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.
Last Winter we were called by Dr Reuben Watson , who moved into a basement flat in Killingworth in August 2003. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Identical flats in Killingworth with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 invoiced quarterly. The lease concluded on 27 January 2099. Taking into account 73 years unexpired we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.