With a residential leasehold property in Kidsgrove, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Anyone in Kidsgrove with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When a lease has less than eighty years left, under the current statute the landlord is entitled to calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Kidsgrove with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
Lease extensions in Kidsgrove can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 dealing with Kidsgrove lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 George, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Kidsgrove. In buying his property 19 years previously, the length of the lease was of no bearing. Luckily, he recognised he needed to take steps soon on Extending the lease. George extended the lease at the eleventh hour in April. George and the landlord ultimately agreed on the final figure of £6,000 . If the lease had descended lower than eighty years, the sum would have escalated by at least £1,025.
In 2012 we were phoned by Dr Y Lefebvre who, having acquired a purpose-built apartment in Kidsgrove in March 1997. The question was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparable properties in Kidsgrove with a long lease were valued about £198,800. The mid-range ground rent payable was £55 billed yearly. The lease elapsed in 2080. Considering the 55 years outstanding we approximated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of fees.
In 2010 we were phoned by Mr and Mrs. G Laurent who, having completed a one bedroom flat in Kidsgrove in February 2006. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative residencies in Kidsgrove with 100 year plus lease were valued around £300,000. The average ground rent payable was £50 invoiced yearly. The lease expired on 25 January 2100. Taking into account 75 years remaining we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.