Unfortunately that a Kirkby 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 deflation being disguised by increases in the Kirkby property market.Where your lease has approximately 90 years left, you should start thinking about 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 slips under 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Kirkby will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Kirkby with more than one hundred years remaining on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Kirkby 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 lawyer we work with provide it.
Eli was the the leasehold proprietor of a high value apartment in Kirkby being marketed with a lease of just over 72 years unexpired. Eli on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Eli to invoke his statutory right. Eli procured expert legal guidance and secured an acceptable deal informally and sell the property.
Dr B Leroy acquired a purpose-built flat in Kirkby in February 1997. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable premises in Kirkby with a long lease were in the region of £173,800. The mid-range amount of ground rent was £60 billed per annum. The lease ended in 2080. Considering the 55 years remaining we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
In 2009 we were contacted by Mr and Mrs. Y Ward who, having moved into a one bedroom apartment in Kirkby in October 1997. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparative residencies in Kirkby with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 collected annually. The lease elapsed in 2091. Considering the 66 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.