With a long leasehold property in Kirkby, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are less than eighty years left. Leasehold owners in Kirkby with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has under eighty years left, under the current legislation the freeholder can calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Kirkby with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Kirkby leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the landlord of her ground floor flat in Kirkby, Holly initiated the lease extension process as the 80 year deadline was swiftly coming. The transaction was concluded in February 2011. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. C Mason took over the lease of a studio flat in Kirkby in July 2001. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Kirkby with a long lease were in the region of £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease expired on 9 September 2097. Having 71 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Mr and Mrs. J Flores took over the lease of a studio apartment in Kirkby in October 1997. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparative residencies in Kirkby with 100 year plus lease were in the region of £254,200. The mid-range ground rent payable was £60 billed per annum. The lease elapsed in 2077. Taking into account 51 years remaining we approximated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 plus professional charges.