Kimbolton leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Kimbolton will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and steps to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Kimbolton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Joseph was the the leasehold proprietor of a studio flat in Kimbolton being marketed with a lease of a few days over 72 years outstanding. Joseph on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Joseph to invoke his statutory right. Joseph procured expert legal guidance and secured satisfactory resolution informally and sell the property.
Dr A Davies acquired a first floor apartment in Kimbolton in May 2003. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Identical premises in Kimbolton with 100 year plus lease were in the region of £206,200. The average ground rent payable was £55 invoiced annually. The lease concluded on 8 August 2082. Given that there were 56 years remaining we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus expenses.
Mrs A Edwards completed a first floor apartment in Kimbolton in March 1997. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparable properties in Kimbolton with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 collected quarterly. The lease finished in 2102. Taking into account 76 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.