Kirkby leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the current lease drops under 80 years - otherwise a higher amount will be due. Flat owners in Kirkby will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Kirkby with over 100 years unexpired 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 service 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.
Benjamin owned a studio apartment in Kirkby on the market with a lease of just over 59 years outstanding. Benjamin on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last Christmas we were e-mailed by Mr and Mrs. C Moreau , who moved into a purpose-built apartment in Kirkby in February 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in Kirkby with a long lease were valued about £270,000. The mid-range amount of ground rent was £55 collected yearly. The lease ran out in 2101. Taking into account 75 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Mr and Mrs. S Allen bought a purpose-built apartment in Kirkby in September 2002. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable properties in Kirkby with 100 year plus lease were in the region of £168,800. The average ground rent payable was £60 collected every twelve months. The lease concluded on 8 July 2081. Considering the 55 years outstanding we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus fees.