Unfortunately that a Kirkby residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Kirkby property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be payable. Most leasehold owners in Kirkby will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Kirkby,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kirkby valuers.
Omar owned a studio apartment in Kirkby being marketed with a lease of a few days over sixty years outstanding. Omar on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Omar to invoke his statutory right. Omar obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2014 we were approached by Mr and Mrs. J Sánchez who, having was assigned a lease of a purpose-built apartment in Kirkby in June 2009. We are asked if we could approximate the premium would be for a 90 year lease extension. Identical residencies in Kirkby with 100 year plus lease were worth £200,800. The average ground rent payable was £65 invoiced quarterly. The lease came to a finish in 2086. Considering the 60 years remaining we estimated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including legals.
In 2014 we were contacted by Dr Logan Morgan who, having completed a one bedroom apartment in Kirkby in November 2006. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Kirkby with a long lease were valued around £255,000. The average amount of ground rent was £50 billed monthly. The lease expired on 5 July 2097. Taking into account 71 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.