Kingsbridge residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Using our service will provide you better control over the value of your Kingsbridge leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the freeholder of her garden flat in Kingsbridge, Laura started the lease extension process just as the lease was approaching the crucial eighty-year mark. The lease extension completed in March 2012. The landlord’s charges were restricted to under 600 GBP.
Last Winter we were approach by Dr Katie Lee , who took over the lease of a ground floor flat in Kingsbridge in January 2000. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable residencies in Kingsbridge with a long lease were in the region of £260,200. The average amount of ground rent was £65 billed quarterly. The lease expired in 2091. Having 66 years left we calculated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of professional charges.
In 2014 we were approached by Dr Y Campbell who, having moved into a one bedroom flat in Kingsbridge in August 2011. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical premises in Kingsbridge with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed every twelve months. The lease terminated on 7 June 2080. Given that there were 55 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 plus fees.