On the balance of probabilities where you own a flat in Kirkbymoorside you actually own a long leasehold interest over your property
Leasehold premises in Kirkbymoorside with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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. |
| 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. |
Engaging our service will provide you better control over the value of your Kirkbymoorside leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Eliot was the the leasehold proprietor of a high value apartment in Kirkbymoorside on the market with a lease of fraction over sixty years unexpired. Eliot informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Eliot to exercise his statutory right. Eliot obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Mr and Mrs. B Petit took over the lease of a purpose-built apartment in Kirkbymoorside in March 2012. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Comparable premises in Kirkbymoorside with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 invoiced yearly. The lease ran out in 2086. Given that there were 60 years remaining we calculated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 not including expenses.
In 2011 we were contacted by Ms D Gunderson who, having owned a one bedroom apartment in Kirkbymoorside in January 1999. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparable properties in Kirkbymoorside with a long lease were worth £210,000. The average amount of ground rent was £50 collected per annum. The lease finished on 4 October 2106. Having 80 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.