It’s a harsh certainty that a Kingswinford residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Kingswinford property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. Most flat owners in Kingswinford will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Kingswinford with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Kingswinford can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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 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.
Alfie owned a conversion flat in Kingswinford on the market with a lease of a few days over 72 years left. Alfie informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert advice and secured an acceptable resolution without resorting to tribunal and sell the property.
In 2012 we were called by Dr Luca Watson who, having owned a basement flat in Kingswinford in May 2009. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative premises in Kingswinford with a long lease were in the region of £225,400. The average amount of ground rent was £45 invoiced per annum. The lease termination date was in 2090. Given that there were 64 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of fees.
Last Spring we were approach by Mr and Mrs. S Martínez , who was assigned a lease of a basement flat in Kingswinford in October 2012. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar residencies in Kingswinford with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 collected annually. The lease came to a finish in 2101. Given that there were 75 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.