The value of Kirkby leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the remaining term is less than 80 years
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
The lawyers that we work with procure Kirkby lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last October Max, came very near to the eighty-year threshold with the lease on his one bedroom flat in Kirkby. In buying his home twenty years previously, the length of the lease was of little relevance. Luckily, he became aware that he needed to take action soon on Extending the lease. Max extended the lease just ahead of time last July. Max and the landlord subsequently agreed on sum of £5,500 . If he had missed the deadline, the sum would have gone up by at least £1,150.
In 2013 we were contacted by Dr V Ward who, having bought a one bedroom apartment in Kirkby in November 1999. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable properties in Kirkby with an extended lease were in the region of £264,000. The average ground rent payable was £60 collected per annum. The lease concluded on 10 April 2079. Considering the 53 years outstanding we calculated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 not including expenses.
Dr Y Johnson took over the lease of a studio apartment in Kirkby in January 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Kirkby with 100 year plus lease were in the region of £225,400. The average amount of ground rent was £45 invoiced monthly. The lease ran out on 15 October 2090. Given that there were 64 years left we approximated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 not including professional charges.