The market value of Kingswinford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is less than eighty years
Leasehold properties in Kingswinford with in excess of 100 years unexpired on the lease are sometimes 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 obtain professional help from a lawyer and valuer with experience in this area.
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 in-depth market knowledge procuring Kingswinford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful negotiations with the freeholder of her garden flat in Kingswinford, Abbie initiated the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The lease extension was concluded in April 2012. The landlord’s fees were negotiated to below 700 GBP.
Last Autumn we were contacted by Dr Cameron Phillips , who completed a basement apartment in Kingswinford in July 2009. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Kingswinford with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 collected monthly. The lease finished on 2 January 2091. Taking into account 66 years outstanding we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Last Autumn we were contacted by Mr Blake Bonnet , who bought a one bedroom flat in Kingswinford in November 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Similar premises in Kingswinford with 100 year plus lease were valued around £275,000. The average ground rent payable was £55 billed every twelve months. The lease lapsed in 2102. Having 77 years remaining we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.