Unfortunately that a Kibworth residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Kibworth property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term drops below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Kibworth will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Kibworth,the lease extension lawyers 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 Kibworth valuers.
Trailing lengthy discussions with the landlord of her studio apartment in Kibworth, Stephanie initiated the lease extension process as the 80 year deadline was fast nearing. The transaction completed in June 2011. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were approached by Dr Georgina Miller who, having was assigned a lease of a one bedroom flat in Kibworth in May 2009. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparable flats in Kibworth with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 invoiced annually. The lease came to a finish on 12 September 2105. Given that there were 79 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
Last Spring we were called by Mr and Mrs. L Cox , who owned a first floor apartment in Kibworth in April 2001. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative homes in Kibworth with 100 year plus lease were worth £275,000. The average ground rent payable was £65 invoiced quarterly. The lease expired on 9 April 2094. Taking into account 68 years as a residual term we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.