The market value of a leasehold property in Kirkdale depends on how long the lease has left to run. If it is near to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed ahead of the 80 year mark. Leasehold Reform legislation entitles Kirkdale qualifying lessees to an additional term of 90 years over and above the existing term, at a notional rent (no ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Kirkdale with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Kirkdale,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kirkdale valuers.
Blake was the the leasehold owner of a high value apartment in Kirkdale being marketed with a lease of a few days over sixty years outstanding. Blake on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Blake to invoke his statutory right. Blake procured expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
In 2014 we were e-mailed by Ms L Cook who, having took over the lease of a garden flat in Kirkdale in February 2002. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Comparable residencies in Kirkdale with 100 year plus lease were valued about £257,800. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease lapsed on 27 February 2090. Considering the 65 years remaining we estimated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 plus costs.
Last Spring we were called by Mr and Mrs. T Jones , who purchased a ground floor apartment in Kirkdale in May 1996. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical residencies in Kirkdale with an extended lease were valued around £191,400. The mid-range ground rent payable was £55 collected yearly. The lease concluded in 2079. Taking into account 54 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 not including costs.