Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Kidsgrove. Inevitably, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the residence needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Kidsgrove have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. You should give due consideration before putting off your Kidsgrove lease extension. Holding off that expense now only increases the price you will eventually incur to extend your lease
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent 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 |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Kidsgrove,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kidsgrove valuers.
Off the back of protracted discussions with the landlord of her leasehold apartment in Kidsgrove, Lauren commenced the lease extension process just as her lease was coming close to the crucial eighty-year mark. The lease extension was finalised in February 2011. The landlord’s costs were restricted to under 500 pounds.
Mr and Mrs. H Gray was assigned a lease of a one bedroom flat in Kidsgrove in March 2000. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative properties in Kidsgrove with an extended lease were worth £267,600. The mid-range ground rent payable was £65 invoiced quarterly. The lease expired in 2092. Taking into account 67 years left we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including fees.
Last Spring we were approach by Mr and Mrs. W Adams , who took over the lease of a one bedroom flat in Kidsgrove in March 2004. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Kidsgrove with a long lease were in the region of £206,200. The average amount of ground rent was £60 billed yearly. The lease finished on 25 June 2081. Having 56 years unexpired we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of legals.