Unfortunately that a Kirkbymoorside residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Kirkbymoorside property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Kirkbymoorside will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Kirkbymoorside with over one hundred years left on the lease are sometimes 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Lease extensions in Kirkbymoorside can be a difficult process. We recommend you get professional help from a conveyancer 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 a wealth of experience 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.
Trailing lengthy correspondence with the landlord of her ground floor apartment in Kirkbymoorside, Holly initiated the lease extension process as the eighty year mark was swiftly advancing. The transaction was concluded in January 2006. The freeholder’s costs were restricted to approximately 700 GBP.
In 2010 we were approached by Mr and Mrs. E Williams who, having purchased a ground floor apartment in Kirkbymoorside in March 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Kirkbymoorside with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced monthly. The lease concluded on 5 June 2080. Considering the 55 years as a residual term we approximated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including costs.
Mr and Mrs. V Garcia moved into a purpose-built apartment in Kirkbymoorside in April 2005. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparable premises in Kirkbymoorside with an extended lease were worth £295,000. The mid-range amount of ground rent was £50 invoiced annually. The lease finished on 13 June 2100. Considering the 75 years remaining we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.