The market value of Kirk Ella leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is below than eighty years
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Lease extensions in Kirk Ella can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
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 Kirk Ella lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Cameron was the the leasehold proprietor of a conversion apartment in Kirk Ella on the market with a lease of just over sixty years outstanding. Cameron on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Cameron to invoke his statutory right. Cameron obtained expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last May we were phoned by Ms O Norbert , who completed a first floor flat in Kirk Ella in March 2001. The question was if we could estimate the price would likely be for a 90 year lease extension. Similar residencies in Kirk Ella with an extended lease were worth £242,600. The mid-range amount of ground rent was £45 collected quarterly. The lease end date was in 2093. Given that there were 67 years remaining we calculated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 plus expenses.
Last month we were e-mailed by Dr O Flores , who acquired a one bedroom apartment in Kirk Ella in September 1997. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable homes in Kirk Ella with an extended lease were in the region of £280,000. The mid-range ground rent payable was £55 billed per annum. The lease elapsed in 2104. Given that there were 78 years outstanding we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.