The nearer a residential lease in Kimberley gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, in excess of 125 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner than later. Most flat owners in Kimberley will meet the qualifying criteria; nevertheless a conveyancer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service gives you increased control over the value of your Kimberley leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Zachary, started to get near to the 80-year mark with the lease on his purpose- built apartment in Kimberley. Having bought his property two decades ago, the length of the lease was of minimal significance. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Zachary extended the lease just in the nick of time last July. Zachary and the freeholder via the management company in the end settled on the final figure of £6,000 . If the lease had slipped to less than eighty years, the amount would have gone up by at least £1,100.
Mr and Mrs. P Ricardo took over the lease of a garden apartment in Kimberley in May 2011. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparative homes in Kimberley with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease termination date was in 2103. Given that there were 78 years outstanding we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.
In 2011 we were approached by Mr and Mrs. T Williams who, having moved into a studio apartment in Kimberley in November 2009. We are asked if we could estimate the price would be for a ninety year lease extension. Comparative flats in Kimberley with 100 year plus lease were valued about £191,000. The average amount of ground rent was £65 invoiced annually. The lease end date was on 22 August 2083. Having 58 years unexpired we calculated the premium to the landlord for the lease extension to be between £23,800 and £27,400 not including legals.