The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Kibworth can extend the lease for an additional ninety years under legislation. Please think carefully before delaying your Kibworth lease extension. Postponing that expense now simply escalates the premium you will ultimately be required to pay to extend the lease.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
Regardless of whether you are a tenant or a freeholder in Kibworth,the lease extension lawyers that we work with will always be prepared 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.
Liam owned a 2 bedroom apartment in Kibworth being marketed with a lease of a few days over 72 years remaining. Liam informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Liam to exercise his statutory right. Liam procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
In 2012 we were contacted by Mr V Lambert who, having took over the lease of a first floor apartment in Kibworth in January 2006. The question was if we could estimate the price would be for a ninety year lease extension. Comparative properties in Kibworth with an extended lease were in the region of £300,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended on 16 June 2101. Considering the 76 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.
Last year we were e-mailed by Mr and Mrs. N Pérez , who acquired a newly refurbished apartment in Kibworth in September 1999. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable flats in Kibworth with a long lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected yearly. The lease lapsed in 2090. Taking into account 65 years remaining we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including legals.