Chances are that where you own a flat in Kirkby you actually own a long leasehold interest over your property
Leasehold premises in Kirkby with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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. |
| 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. |
Using our service gives you enhanced control over the value of your Kirkby leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Harry owned a high value flat in Kirkby on the market with a lease of a little over 59 years remaining. Harry informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Harry to invoke his statutory right. Harry procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2009 we were called by Mr and Mrs. B Roux who, having was assigned a lease of a one bedroom flat in Kirkby in February 2005. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical residencies in Kirkby with a long lease were worth £285,000. The average ground rent payable was £55 invoiced quarterly. The lease lapsed in 2105. Taking into account 79 years unexpired we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.
In 2009 we were approached by Mr S Jones who, having moved into a ground floor apartment in Kirkby in July 2008. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable premises in Kirkby with an extended lease were valued about £193,400. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded on 14 March 2085. Considering the 59 years outstanding we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including fees.