When it comes to residential leasehold property in Kingsbridge, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Residents in Kingsbridge with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has under eighty years left, under the relevant statute the freeholder is entitled to calculate and demand a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Kingsbridge with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Kingsbridge,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kingsbridge valuers.
Elijah was the the leasehold owner of a high value flat in Kingsbridge being marketed with a lease of a few days over fifty eight years outstanding. Elijah informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2011 we were called by Mr and Mrs. M Rose who, having moved into a one bedroom apartment in Kingsbridge in July 1997. We are asked if we could estimate the price would be to prolong the lease by an additional years. Comparative flats in Kingsbridge with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 invoiced yearly. The lease lapsed in 2076. Having 51 years remaining we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus legals.
Dr P Martinez owned a ground floor flat in Kingsbridge in October 1996. We are asked if we could estimate the premium could be to extend the lease by 90 years. Comparable homes in Kingsbridge with an extended lease were in the region of £285,000. The average ground rent payable was £45 invoiced every twelve months. The lease elapsed in 2096. Taking into account 71 years outstanding we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.