For those whose Kimberley property is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
Leasehold properties in Kimberley with more than 100 years left 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 lawyer and surveyor with experience in this area.
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 Kimberley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the freeholder of her two bedroom apartment in Kimberley, Georgia started the lease extension process as the 80 year deadline was rapidly approaching. The lease extension was concluded in May 2005. The landlord’s costs were negotiated to below 450 GBP.
In 2011 we were called by Mr C Miller who, having purchased a garden flat in Kimberley in May 2007. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical homes in Kimberley with 100 year plus lease were valued about £260,000. The average amount of ground rent was £50 billed quarterly. The lease ended on 2 March 2096. Taking into account 71 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
Ms J Norbert purchased a basement apartment in Kimberley in November 2005. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Similar residencies in Kimberley with an extended lease were worth £254,200. The average amount of ground rent was £60 collected monthly. The lease ran out on 8 April 2076. Considering the 51 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of professional charges.