Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Kibworth Beauchamp. Inevitably, the period of lease remaining shortens over time. This may slip by relatively unnoticed when the residence needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Kibworth Beauchamp have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do give due deliberation before putting off your Kibworth Beauchamp lease extension. Putting off that expense now simply increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Kibworth Beauchamp with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Kibworth Beauchamp 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 conveyancing solicitor we work with provide it.
14 months ago Dylan, came perilously close to the eighty-year threshold with the lease on his leasehold apartment in Kibworth Beauchamp. Having purchased his property 18 years ago, the lease term was of minimal importance. Luckily, he became aware that he would imminently be paying way over the odds for a lease extension. Dylan was able to extend his lease at the eleventh hour last June. Dylan and the landlord subsequently settled on a premium of £5,500 . If he failed to meet the deadline, the figure would have increased by at least £1,050.
Mrs D Petit moved into a one bedroom flat in Kibworth Beauchamp in February 2006. The question was if we could estimate the price would be to extend the lease by ninety years. Similar residencies in Kibworth Beauchamp with an extended lease were valued around £267,600. The average amount of ground rent was £65 collected quarterly. The lease ended in 2092. Taking into account 67 years left we estimated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus fees.
Mrs Rosie Watson was assigned a lease of a newly refurbished flat in Kibworth Beauchamp in September 2003. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Kibworth Beauchamp with a long lease were in the region of £206,200. The average ground rent payable was £60 collected per annum. The lease expired on 20 November 2081. Considering the 56 years remaining we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including fees.