Chances are that if you own a flat in Kingsthorpe you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| 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. |
Engaging our service will provide 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 decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her studio flat in Kingsthorpe, Alicia commenced the lease extension process as the 80 year deadline was swiftly approaching. The transaction was finalised in July 2013. The landlord’s costs were kept to an absolute minimum.
Last year we were e-mailed by Mr Jonathan Wood , who purchased a one bedroom apartment in Kingsthorpe in April 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Identical properties in Kingsthorpe with an extended lease were worth £176,200. The average amount of ground rent was £65 invoiced annually. The lease finished on 15 July 2082. Having 56 years outstanding we calculated the premium to the landlord for the lease extension to be within £29,500 and £34,000 plus costs.
Last October we were approach by Mr and Mrs. I Walker , who purchased a recently refurbished apartment in Kingsthorpe in February 1996. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Comparable premises in Kingsthorpe with 100 year plus lease were valued around £237,600. The mid-range amount of ground rent was £45 collected yearly. The lease terminated in 2093. Considering the 67 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 plus legals.