When it comes to residential leasehold premises in Kimbolton, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Residents in Kimbolton with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has below 80 years outstanding, under the current statute the freeholder is entitled to calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Kimbolton with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Halifax | 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 |
Lease extensions in Kimbolton can be a difficult process. We recommend you get 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 procuring Kimbolton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Omar, came perilously close to the 80-year threshold with the lease on his two bedroom flat in Kimbolton. In buying his property 18 years ago, the unexpired term was of little significance. Luckily, he became aware that he needed to take action soon on Extending the lease. Omar was able to extend his lease at the eleventh hour last August. Omar and the freeholder via the management company subsequently settled on the final figure of £5,000 . If he failed to meet the deadline, the amount would have escalated by at least £900.
Last Autumn we were approach by Mr and Mrs. I Jackson , who was assigned a lease of a basement flat in Kimbolton in February 1997. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable flats in Kimbolton with an extended lease were in the region of £243,000. The mid-range ground rent payable was £65 collected per annum. The lease lapsed in 2089. Having 63 years remaining we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of fees.
Last month we were called by Mr F Reed , who took over the lease of a basement flat in Kimbolton in July 2001. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical residencies in Kimbolton with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 billed per annum. The lease terminated on 12 January 2078. Considering the 52 years unexpired we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus expenses.