Kirkby in Ashfield leases on domestic properties are gradually losing value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Kirkby in Ashfield will usually qualify for a lease extension; however a solicitor will check if you qualify. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Kirkby in Ashfield with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Kirkby in Ashfield leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Hunter, came perilously near to the 80-year mark with the lease on his leasehold apartment in Kirkby in Ashfield. In buying his property two decades ago, the length of the lease was of no concern. Thankfully, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Hunter extended the lease just under the wire in September. Hunter and the freeholder in the end agreed on a premium of £6,000 . If he had missed the deadline, the figure would have escalated by a minimum £950.
Mr P Wilson owned a one bedroom apartment in Kirkby in Ashfield in February 2000. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical homes in Kirkby in Ashfield with an extended lease were worth £193,400. The mid-range ground rent payable was £65 invoiced annually. The lease expired in 2084. Considering the 59 years unexpired we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of legals.
In 2011 we were approached by Mr and Mrs. B Norbert who, having completed a basement flat in Kirkby in Ashfield in August 1999. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparable properties in Kirkby in Ashfield with an extended lease were valued around £250,000. The mid-range amount of ground rent was £50 billed yearly. The lease came to a finish in 2095. Given that there were 70 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.