Kirkby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Kirkby enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Kirkby you must see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Kirkby with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold 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. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Kirkby,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kirkby valuers.
Subsequent to lengthy discussions with the landlord of her two bedroom flat in Kirkby, Bethan initiated the lease extension process as the eighty year deadline was rapidly nearing. The legal work was concluded in August 2012. The freeholder’s charges were negotiated to about 700 pounds.
In 2009 we were contacted by Mr and Mrs. Y Mercier who, having moved into a purpose-built apartment in Kirkby in May 2009. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar flats in Kirkby with a long lease were in the region of £285,000. The average ground rent payable was £55 invoiced monthly. The lease came to a finish on 28 March 2106. Considering the 80 years unexpired we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
Last Christmas we were phoned by Dr H Fournier , who bought a basement flat in Kirkby in March 1996. The question was if we could approximate the premium would be for a 90 year extension to my lease. Comparative properties in Kirkby with 100 year plus lease were worth £200,800. The average amount of ground rent was £65 invoiced per annum. The lease expired in 2086. Having 60 years remaining we approximated the premium to the landlord to extend the lease to be within £20,900 and £24,200 not including legals.