Kibworth residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
Leasehold properties in Kibworth with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘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 freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Kibworth can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Kibworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Isaac, started to get near to the 80-year threshold with the lease on his garden apartment in Kibworth. Having bought his property two decades ago, the lease term was of no importance. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Isaac extended the lease just in the nick of time in July. Isaac and the freeholder via the managing agents subsequently settled on the final figure of £5,500 . If he not met the deadline, the amount would have become more exhorbitant by at least £875.
Last Spring we were called by Mr and Mrs. T Walker , who bought a studio apartment in Kibworth in June 2001. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical homes in Kibworth with a long lease were worth £250,400. The average ground rent payable was £65 collected quarterly. The lease end date was in 2089. Given that there were 64 years remaining we calculated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 plus professional charges.
Last Autumn we were called by Dr Kyle Harris , who took over the lease of a one bedroom apartment in Kibworth in July 2001. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Identical residencies in Kibworth with 100 year plus lease were in the region of £189,000. The mid-range ground rent payable was £55 invoiced yearly. The lease ended in 2078. Considering the 53 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus expenses.