The only way is down when it comes to Kibworth Beauchamp lease terms. Kibworth Beauchamp properties that have a residual term fewer than eighty years will reduce in market price even faster, and the cost to extend your lease will rise.
Leasehold properties in Kibworth Beauchamp with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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 also be not less than 75 years at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Kibworth Beauchamp,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kibworth Beauchamp valuers.
Leo owned a studio apartment in Kibworth Beauchamp being marketed with a lease of a few days over sixty years outstanding. Leo on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Mr Blake Cook completed a purpose-built apartment in Kibworth Beauchamp in May 2004. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparable homes in Kibworth Beauchamp with 100 year plus lease were worth £225,800. The average amount of ground rent was £60 collected monthly. The lease concluded on 14 July 2085. Considering the 60 years outstanding we approximated the premium to the freeholder to extend the lease to be between £24,700 and £28,600 plus legals.
In 2013 we were called by Dr L Rose who, having took over the lease of a recently refurbished flat in Kibworth Beauchamp in April 1999. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical properties in Kibworth Beauchamp with an extended lease were valued around £210,000. The average ground rent payable was £50 collected annually. The lease elapsed on 26 March 2105. Taking into account 80 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.