When it comes to residential leasehold property in Kibworth Beauchamp, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are less than 80 years remaining. Residents in Kibworth Beauchamp with a lease drawing near to 81 years left should seriously consider extending it without delay. Once the lease term has under eighty years remaining, under the current legislation the freeholder can calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Yorkshire 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. |
Using our service will provide you better control over the value of your Kibworth Beauchamp leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Evan, started to get close to the 80-year threshold with the lease on his basement flat in Kibworth Beauchamp. In buying his flat two decades ago, the unexpired term was of minimal concern. by good luck, he became aware that he needed to take steps soon on Extending the lease. Evan extended the lease just in the nick of time last June. Evan and the freeholder in the end agreed on sum of £5,500 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £1,050.
Last Winter we were approach by Dr M Lewis , who purchased a ground floor apartment in Kibworth Beauchamp in October 2001. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative properties in Kibworth Beauchamp with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 collected quarterly. The lease termination date was on 10 August 2097. Having 72 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus legals.
In 2011 we were contacted by Dr H Wood who, having bought a studio flat in Kibworth Beauchamp in October 1997. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparable premises in Kibworth Beauchamp with a long lease were in the region of £233,200. The average ground rent payable was £60 invoiced annually. The lease concluded in 2086. Considering the 61 years remaining we approximated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 not including professional charges.