Unfortunately that a Kimbolton residential lease is a wasting 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 loss of value being disguised by increases in the Kimbolton property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Kimbolton will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Kimbolton with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Kimbolton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kimbolton valuers.
Off the back of unsuccessful correspondence with the landlord of her first floor apartment in Kimbolton, Sophia commenced the lease extension process as the eighty year mark was quickly coming. The lease extension was finalised in August 2013. The freeholder’s fees were kept to an absolute minimum.
Last year we were approach by Mr and Mrs. M Allen , who purchased a basement flat in Kimbolton in June 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Similar properties in Kimbolton with a long lease were worth £290,000. The mid-range amount of ground rent was £45 collected annually. The lease lapsed in 2099. Given that there were 73 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
Last Christmas we were called by Mr and Mrs. G Hernández , who was assigned a lease of a first floor apartment in Kimbolton in May 2007. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparable residencies in Kimbolton with an extended lease were valued about £240,600. The average ground rent payable was £60 collected monthly. The lease expired on 3 October 2088. Having 62 years remaining we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of fees.