The re-sale value of a leasehold property in Kibworth is impacted by how long the lease has left to run. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be finalised prior to the 80 year threshold. Leasehold Reform legislation entitles Kibworth qualifying lessees to acquire a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Kibworth with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| 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 conveyancing solicitors that we work with procure 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.
After lengthy negotiations with the freeholder of her two bedroom flat in Kibworth, Stephanie commenced the lease extension process as the 80 year mark was swiftly coming. The lease extension was concluded in March 2011. The landlord’s fees were restricted to less than six hundred pounds.
Last Christmas we were called by Ms Amelia Stewart , who completed a recently refurbished flat in Kibworth in November 2012. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Identical residencies in Kibworth with a long lease were valued about £208,600. The mid-range amount of ground rent was £60 invoiced per annum. The lease expired on 11 January 2082. Having 57 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of legals.
Last year we were called by Dr W López , who was assigned a lease of a ground floor flat in Kibworth in May 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Identical residencies in Kibworth with a long lease were worth £200,000. The average amount of ground rent was £50 collected annually. The lease terminated on 18 January 2102. Having 77 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.