It’s an underpublicised certainty that a Kimberley residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Kimberley property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term drops under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Kimberley will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold premises in Kimberley with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Kimberley can be a difficult process. We recommend you secure guidance from a lawyer and valuer 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 a wealth of experience dealing with Kimberley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of lengthy discussions with the landlord of her basement apartment in Kimberley, Morgan commenced the lease extension process as the eighty year deadline was rapidly approaching. The lease extension was concluded in February 2013. The freeholder’s charges were kept to an absolute minimum.
Dr Isabella White acquired a purpose-built apartment in Kimberley in May 1996. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar homes in Kimberley with a long lease were worth £176,200. The average amount of ground rent was £65 invoiced per annum. The lease concluded on 21 April 2082. Taking into account 56 years remaining we estimated the premium to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of costs.
Last month we were e-mailed by Mr and Mrs. H Brooks , who acquired a recently refurbished apartment in Kimberley in August 2005. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable flats in Kimberley with 100 year plus lease were worth £242,600. The average ground rent payable was £45 collected monthly. The lease expiry date was on 28 August 2093. Considering the 67 years left we estimated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of costs.