For those whose Kibworth home is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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. |
| 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. |
The lawyers that we work with undertake Kibworth 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.
Lucas was the the leasehold owner of a studio apartment in Kibworth on the market with a lease of fraction over fifty eight years left. Lucas informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mr Andrew Khan acquired a ground floor apartment in Kibworth in March 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable properties in Kibworth with a long lease were valued around £171,800. The mid-range amount of ground rent was £55 collected monthly. The lease terminated in 2076. Taking into account 50 years unexpired we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of costs.
In 2009 we were contacted by Mr and Mrs. K Rodríguez who, having completed a purpose-built apartment in Kibworth in June 2011. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Comparative flats in Kibworth with a long lease were worth £280,000. The mid-range ground rent payable was £45 collected quarterly. The lease concluded in 2096. Taking into account 70 years remaining we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.