There is no doubt about it a leasehold property in Kirk Ella is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 125 years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Many flat owners in Kirk Ella will qualify for this right; that being said a conveyancing solicitor should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The lawyers that we work with undertake Kirk Ella 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.
In the wake of eight months of protracted negotiations with the landlord of her two bedroom flat in Kirk Ella, Rhiannon started the lease extension process as the eighty year mark was fast advancing. The lease extension was finalised in March 2008. The freeholder’s costs were restricted to below 550 GBP.
In 2010 we were e-mailed by Dr Chelsea Smith who, having took over the lease of a ground floor flat in Kirk Ella in July 2007. The question was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical properties in Kirk Ella with 100 year plus lease were in the region of £173,800. The average ground rent payable was £65 collected monthly. The lease terminated on 26 February 2080. Taking into account 55 years left we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including professional charges.
In 2013 we were called by Mr J Clark who, having moved into a ground floor apartment in Kirk Ella in February 2002. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative homes in Kirk Ella with a long lease were worth £235,200. The mid-range ground rent payable was £45 collected yearly. The lease ended on 21 October 2091. Considering the 66 years outstanding we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.