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 escalate materialy once the remaining term is less than 80 years
Leasehold properties in Kirkby with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Coventry Building Society | 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. |
The conveyancers 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.
Trailing unsuccessful discussions with the freeholder of her basement flat in Kirkby, Natalie commenced the lease extension process as the eighty year threshold was fast coming. The transaction was finalised in March 2006. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were contacted by Dr G André , who was assigned a lease of a one bedroom apartment in Kirkby in October 1996. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Kirkby with an extended lease were in the region of £265,000. The mid-range ground rent payable was £55 invoiced per annum. The lease terminated on 5 January 2100. Having 74 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Last Autumn we were phoned by Dr Riley Young , who owned a one bedroom flat in Kirkby in January 1996. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparative flats in Kirkby with a long lease were in the region of £166,400. The average ground rent payable was £60 collected every twelve months. The lease came to a finish on 2 September 2080. Having 54 years remaining we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including expenses.