Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Kidsgrove. Clearly, the length of lease remaining shortens over time. This may pass by relatively unnoticed when the property has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Kidsgrove have the right to extend the lease for a further ninety years under Leasehold Reform legislation. You should give careful consideration before putting off your Kidsgrove lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Kidsgrove can be a difficult process. We recommend you get professional help from a lawyer 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 Kidsgrove lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley was the the leasehold owner of a studio flat in Kidsgrove on the market with a lease of a few days over sixty years remaining. Riley on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Riley to exercise his statutory right. Riley obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last month we were approach by Dr Milo Rogers , who completed a ground floor apartment in Kidsgrove in July 2012. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical premises in Kidsgrove with 100 year plus lease were valued about £205,000. The average ground rent payable was £50 invoiced annually. The lease termination date was on 24 April 2104. Considering the 79 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
Mr P Richardson acquired a garden flat in Kidsgrove in September 2002. The question was if we could approximate the premium could be for a ninety year extension to my lease. Similar premises in Kidsgrove with an extended lease were worth £275,000. The average ground rent payable was £65 invoiced yearly. The lease terminated in 2093. Having 68 years remaining we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.