With a residential leasehold premises in Kirkbymoorside, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years left. Leasehold owners in Kirkbymoorside with a lease nearing 81 years remaining should seriously think of extending it sooner than later. When a lease has under eighty years outstanding, under the relevant Act the freeholder can calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Kirkbymoorside lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Arthur owned a conversion apartment in Kirkbymoorside being marketed with a lease of just over fifty eight years remaining. Arthur informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last year we were e-mailed by Mr G Clark , who purchased a one bedroom flat in Kirkbymoorside in May 2004. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparative properties in Kirkbymoorside with a long lease were in the region of £189,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease came to a finish in 2079. Considering the 53 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.
Last Spring we were approach by Mr and Mrs. W Howard , who purchased a first floor apartment in Kirkbymoorside in January 1995. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar residencies in Kirkbymoorside with an extended lease were worth £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease finished on 15 January 2099. Considering the 73 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.