When it comes to residential leasehold premises in Kirkby, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years left. Anyone in Kirkby with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. When a lease has under 80 years outstanding, under the current statute the landlord is entitled to calculate and charge a larger amount, based on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Kirkby with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
|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.|
|Barclays plc|| Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).|
Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.
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;
|Birmingham Midshires||Minimum 70 years from the date of the mortgage.|
|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.|
Engaging our service will provide you better control over the value of your Kirkby leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Joseph was the the leasehold proprietor of a high value apartment in Kirkby on the market with a lease of fraction over 61 years remaining. Joseph informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Joseph to invoke his statutory right. Joseph obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2012 we were phoned by Dr E Peterson who, having completed a one bedroom flat in Kirkby in February 2005. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar flats in Kirkby with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 collected annually. The lease elapsed on 6 February 2097. Considering the 75 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
In 2012 we were e-mailed by Mr W Mason who, having completed a newly refurbished apartment in Kirkby in June 2011. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar homes in Kirkby with a long lease were in the region of £173,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease came to a finish in 2077. Considering the 55 years outstanding we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including legals.