Kidsgrove 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 becomes more expensive. Most owners of residential leasehold property in Kidsgrove enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Kidsgrove you must check if your lease has between seventy and 90 years left. There are good reasons why a Kidsgrove flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is effected without delay
Leasehold properties in Kidsgrove with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Kidsgrove can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer 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 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.
George was the the leasehold proprietor of a conversion apartment in Kidsgrove on the market with a lease of just over 59 years remaining. George on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were George to invoke his statutory right. George obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Mrs Amber Allen moved into a first floor apartment in Kidsgrove in September 1998. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical flats in Kidsgrove with an extended lease were in the region of £290,000. The average amount of ground rent was £45 invoiced annually. The lease finished on 26 July 2098. Taking into account 72 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 not including costs.
Mr U Michel purchased a newly refurbished apartment in Kidsgrove in September 1998. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar homes in Kidsgrove with an extended lease were in the region of £233,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease elapsed in 2087. Considering the 61 years outstanding we approximated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 plus fees.