The market value of a leasehold property in Kirkby depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is ideal to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be concluded prior to the 80 year mark. Statute entitles Kirkby qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose 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.
Leasehold properties in Kirkby with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Kirkby,the lease extension lawyers 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.
Last October Leo, came critically near to the eighty-year threshold with the lease on his garden flat in Kirkby. Having bought his flat two decades ago, the lease term was of minimal interest. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Leo extended the lease at the eleventh hour last August. Leo and the freeholder subsequently settled on a premium of £5,000 . If the lease had gone lower than 80 years, the sum would have become more costly by a minimum £1,150.
Mr and Mrs. A Robinson purchased a ground floor flat in Kirkby in January 2000. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable properties in Kirkby with 100 year plus lease were valued about £166,400. The average amount of ground rent was £60 collected per annum. The lease termination date was on 13 November 2079. Having 54 years remaining we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including expenses.
In 2014 we were phoned by Dr J Young who, having owned a basement flat in Kirkby in November 2008. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar properties in Kirkby with 100 year plus lease were worth £227,800. The mid-range amount of ground rent was £45 billed monthly. The lease came to a finish in 2090. Considering the 65 years left we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.