With a residential leasehold premises in Kimberley, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Anyone in Kimberley with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. When a lease has below eighty years outstanding, under the relevant statute the freeholder can calculate and charge a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Kimberley with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Kimberley leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the freeholder of her ground floor flat in Kimberley, Mollie initiated the lease extension process as the 80 year mark was fast approaching. The transaction completed in May 2008. The landlord’s fees were restricted to under 600 pounds.
Mr and Mrs. M Lefèvre purchased a garden apartment in Kimberley in March 2004. The question was if we could approximate the premium could be to extend the lease by an additional years. Comparable premises in Kimberley with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 collected quarterly. The lease ended on 13 April 2087. Having 61 years left we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of legals.
Last Summer we were contacted by Mrs Jessica Norbert , who owned a purpose-built flat in Kimberley in January 1999. The question was if we could estimate the price would likely be to extend the lease by ninety years. Comparative premises in Kimberley with an extended lease were valued about £260,000. The mid-range amount of ground rent was £50 billed yearly. The lease concluded in 2098. Taking into account 72 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.