The market value of Kirby Muxloe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is less than eighty years
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Kirby Muxloe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Liam owned a conversion flat in Kirby Muxloe on the market with a lease of fraction over 72 years unexpired. Liam on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be payable on a lease extension were Liam to invoke his statutory right. Liam procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Last Christmas we were e-mailed by Dr S Lambert , who bought a ground floor flat in Kirby Muxloe in March 2011. The question was if we could approximate the premium could be to prolong the lease by 90 years. Comparative flats in Kirby Muxloe with an extended lease were valued around £290,000. The mid-range ground rent payable was £45 billed monthly. The lease concluded in 2098. Given that there were 72 years outstanding we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of professional charges.
Mr and Mrs. S Martínez moved into a ground floor apartment in Kirby Muxloe in October 2011. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Similar properties in Kirby Muxloe with an extended lease were in the region of £233,200. The average amount of ground rent was £60 invoiced annually. The lease terminated on 3 January 2087. Given that there were 61 years left we approximated the premium to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of professional charges.