Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Kirkby. Inevitably, the length of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Kirkby have the legal entitlement to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do give due consideration before putting off your Kirkby lease extension. Holding off the cost now simply increases the price you will eventually have to pay for a lease extension
Leasehold premises in Kirkby with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Kirkby,the lease extension experts that we work with will always be happy 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 Caleb, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Kirkby. In buying his property two decades ago, the length of the lease was of minimal concern. Fortunately, he recognised he needed to take action soon on a lease extension. Caleb arranged for a lease extension just under the wire last January. Caleb and the freeholder subsequently settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have become more exhorbitant by a minimum £1,025.
Last Winter we were approach by Mr and Mrs. I Morgan , who acquired a basement apartment in Kirkby in June 1999. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable homes in Kirkby with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 billed per annum. The lease ended on 24 February 2085. Given that there were 59 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus costs.
In 2010 we were called by Ms Sarah James who, having bought a studio flat in Kirkby in July 1999. The question was if we could approximate the price could be for a 90 year lease extension. Comparative residencies in Kirkby with an extended lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed quarterly. The lease concluded on 12 June 2096. Having 70 years left we approximated the compensation to the freeholder to extend the lease to be within £10,500 and £12,000 exclusive of fees.