Kirby Muxloe leases on residential properties are gradually losing value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease dips lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in Kirby Muxloe will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Kirby Muxloe with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Coventry Building Society | 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. |
| 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. |
Using our service will provide you increased control over the value of your Kirby Muxloe leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the landlord of her first floor apartment in Kirby Muxloe, Amy commenced the lease extension process as the 80 year threshold was fast advancing. The legal work completed in February 2007. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were called by Mr Luca Murphy who, having purchased a basement flat in Kirby Muxloe in March 2009. 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. Similar homes in Kirby Muxloe with 100 year plus lease were valued about £300,000. The average amount of ground rent was £50 collected annually. The lease elapsed in 2100. Given that there were 75 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Last January we were called by Dr Jacob Carter , who acquired a basement apartment in Kirby Muxloe in October 2010. The question was if we could estimate the premium would likely be to extend the lease by 90 years. Similar homes in Kirby Muxloe with 100 year plus lease were in the region of £250,400. The mid-range ground rent payable was £65 collected per annum. The lease ended on 16 March 2089. Given that there were 64 years remaining we calculated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 plus legals.