With a residential leasehold premises in Kingsbridge, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Anyone in Kingsbridge with a lease drawing near to 81 years left should seriously consider extending it sooner than later. Once a lease has under 80 years remaining, under the current statute the freeholder is entitled to calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Kingsbridge with over 100 years remaining on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Kingsbridge,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kingsbridge valuers.
Theo was the the leasehold proprietor of a conversion apartment in Kingsbridge on the market with a lease of fraction over 59 years left. Theo informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Theo to exercise his statutory right. Theo obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last month we were approach by Mrs F Phillips , who moved into a one bedroom apartment in Kingsbridge in July 2009. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparative homes in Kingsbridge with 100 year plus lease were valued about £200,000. The average ground rent payable was £50 invoiced per annum. The lease elapsed in 2104. Having 78 years left we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.
Last month we were phoned by Mr and Mrs. V Roberts , who owned a first floor flat in Kingsbridge in August 2011. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Similar properties in Kingsbridge with an extended lease were valued around £267,600. The mid-range ground rent payable was £65 invoiced yearly. The lease ended on 20 September 2093. Having 67 years unexpired we approximated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 exclusive of fees.