Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Kingswinford. Inevitably, the length of lease remaining reduces over time. This is often overlooked and only becomes a problem when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Qualifying leaseholders in Kingswinford have the legal entitlement to extend the lease for a further ninety years under legislation. You should give careful consideration before putting off your Kingswinford lease extension. Putting off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold properties in Kingswinford with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Kingswinford can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Kingswinford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Cameron, came perilously close to the 80-year mark with the lease on his one bedroom flat in Kingswinford. In buying his home 19 years ago, the lease term was of little bearing. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Cameron arranged for a lease extension at the eleventh hour in August. Cameron and the freeholder eventually settled on a premium of £5,500 . If the lease had slipped to less than 80 years, the price would have become more exhorbitant by at least £1,025.
Dr B Wood completed a recently refurbished apartment in Kingswinford in June 1998. The question was if we could estimate the price would be to extend the lease by an additional years. Comparative residencies in Kingswinford with an extended lease were in the region of £275,000. The average ground rent payable was £55 billed every twelve months. The lease concluded in 2102. Given that there were 76 years unexpired we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
Last Spring we were called by Ms Niamh Mason , who completed a one bedroom flat in Kingswinford in May 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Similar premises in Kingswinford with a long lease were worth £176,200. The average amount of ground rent was £65 billed per annum. The lease ran out in 2082. Given that there were 56 years as a residual term we estimated the premium to the landlord for the lease extension to be within £29,500 and £34,000 not including legals.