Kingsthorpe leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Kingsthorpe will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are also strict deadlines and steps to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Kingsthorpe with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you increased control over the value of your Kingsthorpe leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Ollie, started to get near to the eighty-year threshold with the lease on his studio apartment in Kingsthorpe. Having bought his flat twenty years previously, the unexpired term was of minimal relevance. Luckily, he noticed he needed to take steps soon on Extending the lease. Ollie was able to extend his lease just in the nick of time last June. Ollie and the freeholder in the end agreed on sum of £5,000 . If the lease had fallen lower than 80 years, the amount would have become more exhorbitant by a minimum £1,050.
In 2009 we were contacted by Mr and Mrs. I Williams who, having bought a garden apartment in Kingsthorpe in February 2004. The question was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar properties in Kingsthorpe with a long lease were valued around £254,200. The average ground rent payable was £60 invoiced quarterly. The lease elapsed on 26 August 2077. Taking into account 51 years remaining we calculated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 plus expenses.
In 2010 we were approached by Mr and Mrs. Y Bell who, having acquired a one bedroom apartment in Kingsthorpe in August 2002. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Identical premises in Kingsthorpe with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 billed per annum. The lease elapsed on 10 July 2088. Considering the 62 years remaining we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.