Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Kirkby. Inevitably, the term of lease left shortens as time goes by. This may slip by relatively unnoticed when the property has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Eligible leaseholders in Kirkby have the legal entitlement to extend the lease for an additional 90 years under statute. You should give careful attention before delaying your Kirkby lease extension. Holding off the cost now likely increases the price you will eventually incur for a lease extension
Leasehold residencies in Kirkby with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Kirkby can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 a wealth of experience procuring Kirkby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the freeholder of her first floor apartment in Kirkby, Amber initiated the lease extension process just as her lease was nearing the crucial eighty-year mark. The lease extension completed in March 2015. The landlord’s charges were kept to an absolute minimum.
Mr Finley Robinson acquired a garden flat in Kirkby in May 1996. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable properties in Kirkby with a long lease were worth £183,600. The mid-range amount of ground rent was £65 collected quarterly. The lease lapsed on 3 August 2082. Having 57 years left we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.
In 2011 we were contacted by Mr and Mrs. D Miller who, having was assigned a lease of a one bedroom flat in Kirkby in May 2007. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable residencies in Kirkby with a long lease were valued about £245,000. The mid-range amount of ground rent was £50 billed monthly. The lease terminated in 2093. Considering the 68 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.