Kibworth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Kibworth residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Kibworth you would be well advised to investigate if your lease has between seventy and ninety years left. There are good reasons why a Kibworth leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is effected without delay
Leasehold premises in Kibworth with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Lease extensions in Kibworth can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
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 in-depth market knowledge 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.
Charlie was the the leasehold owner of a 2 bedroom apartment in Kibworth being marketed with a lease of fraction over fifty eight years remaining. Charlie on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Charlie to exercise his statutory right. Charlie obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Autumn we were phoned by Mrs Amber Brown , who was assigned a lease of a studio apartment in Kibworth in July 2005. The question was if we could approximate the premium would be to prolong the lease by ninety years. Similar residencies in Kibworth with 100 year plus lease were in the region of £243,000. The average ground rent payable was £65 billed monthly. The lease ended on 28 March 2089. Having 63 years remaining we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including expenses.
Last Christmas we were e-mailed by Dr E Phillips , who moved into a purpose-built apartment in Kibworth in April 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical properties in Kibworth with 100 year plus lease were in the region of £181,600. The average amount of ground rent was £55 collected monthly. The lease elapsed on 10 January 2078. Given that there were 52 years left we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including professional charges.