For those whose Kingsley home is held on a long lease, our message is clear – if you ignore the situation, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension.
Leasehold premises in Kingsley with more than 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 freehold unless savings on ground rent and maintenance 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. |
| 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. |
| 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 |
| 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. |
Retaining our service gives you better control over the value of your Kingsley leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the landlord of her ground floor apartment in Kingsley, Kirsty commenced the lease extension process just as her lease was approaching the critical 80-year deadline. The lease extension was concluded in November 2005. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were called by Dr C Norbert who, having was assigned a lease of a basement apartment in Kingsley in June 2009. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Comparative flats in Kingsley with 100 year plus lease were worth £295,000. The average amount of ground rent was £50 billed annually. The lease terminated on 26 February 2101. Taking into account 75 years unexpired we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.
In 2009 we were phoned by Ms Anna Jones who, having acquired a basement flat in Kingsley in May 1995. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical flats in Kingsley with 100 year plus lease were worth £250,400. The mid-range amount of ground rent was £65 billed yearly. The lease came to a finish on 2 June 2090. Having 64 years unexpired we calculated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 not including fees.