Kirby Muxloe leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Kirby Muxloe tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Kirby Muxloe you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Kirby Muxloe can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Kirby Muxloe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted negotiations with the freeholder of her studio flat in Kirby Muxloe, Jessica initiated the lease extension process just as the lease was coming close to the critical 80-year mark. The legal work was finalised in July 2011. The landlord’s costs were restricted to less than 700 GBP.
Last Christmas we were approach by Dr Aaron Stewart , who was assigned a lease of a first floor flat in Kirby Muxloe in April 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparative flats in Kirby Muxloe with a long lease were valued about £230,800. The average amount of ground rent was £60 billed quarterly. The lease elapsed on 2 October 2086. Taking into account 60 years left we calculated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 plus professional charges.
Mrs Rachel Davis moved into a one bedroom flat in Kirby Muxloe in October 1995. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar residencies in Kirby Muxloe with a long lease were valued about £210,000. The mid-range amount of ground rent was £50 invoiced annually. The lease expired on 9 August 2106. Considering the 80 years outstanding we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.