There is no doubt about it a leasehold flat or house in Kidsgrove is a wasting asset as a result of the diminishing lease term. Where the residual term has, over one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Most flat owners in Kidsgrove will meet the qualifying criteria; nevertheless a conveyancer should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Kidsgrove 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 conveyancer we work with provide it.
Teddy owned a high value flat in Kidsgrove on the market with a lease of just over 59 years left. Teddy informally spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Teddy to exercise his statutory right. Teddy 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.
Last Christmas we were contacted by Mr and Mrs. H Michel , who bought a purpose-built apartment in Kidsgrove in November 2000. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparative residencies in Kidsgrove with an extended lease were in the region of £189,000. The mid-range ground rent payable was £55 billed per annum. The lease elapsed on 18 June 2079. Given that there were 53 years outstanding we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including professional charges.
In 2013 we were approached by Mr and Mrs. I Lee who, having bought a first floor flat in Kidsgrove in September 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Comparable properties in Kidsgrove with an extended lease were valued around £290,000. The average amount of ground rent was £45 billed quarterly. The lease ran out in 2099. Given that there were 73 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.