Kingswinford leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Kingswinford will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Kingswinford with over 100 years left 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| 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. |
The lawyers that we work with undertake Kingswinford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last Christmas Finn, came seriously close to the 80-year mark with the lease on his studio flat in Kingswinford. In buying his flat 18 years previously, the length of the lease was of minimal bearing. Fortunately, he became aware that he needed to take action soon on Extending the lease. Finn extended the lease just under the wire last September. Finn and the landlord in the end settled on sum of £5,000 . If he had missed the deadline, the premium would have escalated by a minimum £950.
In 2014 we were phoned by Dr V Hall who, having moved into a basement apartment in Kingswinford in August 1998. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar homes in Kingswinford with a long lease were worth £183,600. The average amount of ground rent was £65 collected yearly. The lease elapsed in 2083. Taking into account 57 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.
In 2009 we were approached by Mr R López who, having acquired a one bedroom apartment in Kingswinford in August 2008. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparable homes in Kingswinford with a long lease were worth £245,000. The average amount of ground rent was £50 collected monthly. The lease concluded in 2094. Given that there were 68 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.