The market value of a leasehold property in Kirkbymoorside is impacted by how long the lease has left to run. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed prior to the 80 year cut off point. Leasehold Reform legislation entitles Kirkbymoorside qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Kirkbymoorside with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
Lease extensions in Kirkbymoorside can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Kirkbymoorside lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ben owned a studio apartment in Kirkbymoorside on the market with a lease of just over sixty years outstanding. Ben informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ben to invoke his statutory right. Ben procured expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
In 2013 we were called by Mr and Mrs. O Wilson who, having was assigned a lease of a purpose-built apartment in Kirkbymoorside in March 1995. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical flats in Kirkbymoorside with an extended lease were in the region of £285,000. The average ground rent payable was £45 collected per annum. The lease terminated in 2098. Given that there were 72 years remaining we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
Last Autumn we were phoned by Dr Nathaniel Pérez , who acquired a newly refurbished apartment in Kirkbymoorside in September 1997. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Similar homes in Kirkbymoorside with an extended lease were worth £233,200. The average ground rent payable was £60 billed monthly. The lease lapsed on 10 August 2087. Considering the 61 years unexpired we calculated the premium to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of professional charges.