For those whose Kirkby home is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Kirkby,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kirkby valuers.
Elijah owned a conversion flat in Kirkby on the market with a lease of just over fifty eight years unexpired. Elijah informally approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Elijah to exercise his statutory right. Elijah procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2013 we were e-mailed by Mr and Mrs. P Lambert who, having moved into a one bedroom flat in Kirkby in June 1999. We are asked if we could approximate the price would likely be for a 90 year lease extension. Similar premises in Kirkby with an extended lease were valued around £256,600. The average amount of ground rent was £60 collected quarterly. The lease finished in 2078. Taking into account 52 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 plus costs.
Mr Dylan Martinez owned a one bedroom apartment in Kirkby in January 1995. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar flats in Kirkby with a long lease were worth £218,000. The average ground rent payable was £45 invoiced monthly. The lease finished on 18 April 2089. Having 63 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of fees.