The market value of a leasehold property in Kirkby is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be finalised well before the eighty year mark. Current legislation entitles Kirkby qualifying lessees to acquire a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Kirkby,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kirkby valuers.
Following protracted correspondence with the landlord of her ground floor flat in Kirkby, Courtney initiated the lease extension process just as her lease was coming close to the critical 80-year deadline. The transaction was finalised in April 2012. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were contacted by Dr L Murphy , who owned a ground floor flat in Kirkby in June 2008. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical properties in Kirkby with 100 year plus lease were in the region of £245,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ended in 2094. Having 68 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
Last Winter we were approach by Dr M Cooper , who was assigned a lease of a purpose-built apartment in Kirkby in September 1998. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Similar properties in Kirkby with an extended lease were valued about £285,000. The average ground rent payable was £55 billed per annum. The lease expired on 16 June 2105. Having 79 years remaining we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.