Kirk Ella leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Kirk Ella will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure 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.
Evan owned a high value apartment in Kirk Ella on the market with a lease of a few days over sixty years remaining. Evan on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Evan to exercise his statutory right. Evan procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Mr T Cooper bought a purpose-built apartment in Kirk Ella in June 2007. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Identical properties in Kirk Ella with a long lease were in the region of £191,000. The average ground rent payable was £65 billed yearly. The lease termination date was on 4 April 2083. Considering the 58 years unexpired we estimated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 plus expenses.
In 2013 we were phoned by Ms P Gray who, having completed a ground floor flat in Kirk Ella in February 2001. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Kirk Ella with an extended lease were valued around £250,000. The average ground rent payable was £50 billed yearly. The lease lapsed in 2094. Having 69 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.