Chances are that if you own a flat in Kingsthorpe you actually own a long leasehold interest over your property
Leasehold properties in Kingsthorpe with in excess of 100 years left 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 property. 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 |
|---|---|
| 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 |
| 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. |
Retaining our service will provide you enhanced control over the value of your Kingsthorpe leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the freeholder of her purpose-built apartment in Kingsthorpe, Molly commenced the lease extension process as the eighty year threshold was swiftly advancing. The lease extension completed in June 2014. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. V Parker moved into a ground floor flat in Kingsthorpe in September 1997. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable properties in Kingsthorpe with an extended lease were valued about £227,800. The average amount of ground rent was £45 billed quarterly. The lease elapsed on 13 July 2090. Given that there were 65 years outstanding we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.
Last Spring we were phoned by Mr W Lambert , who bought a studio flat in Kingsthorpe in August 1995. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar properties in Kingsthorpe with a long lease were worth £275,000. The average ground rent payable was £55 invoiced annually. The lease ended in 2101. Taking into account 76 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.