As the length of the unexpired term of a Kimberley residential lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Kimberley will qualify for this right; nevertheless a conveyancer will 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 in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Kimberley can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience procuring Kimberley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the landlord of her garden apartment in Kimberley, Abbie commenced the lease extension process just as the lease was nearing the all-important eighty-year threshold. The lease extension was finalised in September 2009. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. C Ali completed a one bedroom flat in Kimberley in January 2007. The question was if we could approximate the premium would be for a ninety year lease extension. Comparable flats in Kimberley with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 collected every twelve months. The lease came to a finish in 2084. Considering the 59 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus professional charges.
In 2012 we were contacted by Mrs Alexandra Watson who, having purchased a garden apartment in Kimberley in September 2007. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Identical premises in Kimberley with an extended lease were valued around £255,000. The mid-range amount of ground rent was £50 billed yearly. The lease ran out in 2095. Given that there were 70 years left we approximated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 plus costs.