Unfortunately that a Kirkdale residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Kirkdale property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Kirkdale will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify 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 conveyancer throughout the process.
Leasehold residencies in Kirkdale with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 30 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. |
Engaging our service will provide you increased control over the value of your Kirkdale leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Kyle owned a 2 bedroom apartment in Kirkdale on the market with a lease of fraction over sixty years remaining. Kyle on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kyle to invoke his statutory right. Kyle procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2010 we were approached by Mrs W Bertrand who, having was assigned a lease of a recently refurbished flat in Kirkdale in September 2001. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable residencies in Kirkdale with an extended lease were worth £174,200. The mid-range ground rent payable was £55 invoiced per annum. The lease expired in 2077. Given that there were 51 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus fees.
Last Autumn we were contacted by Mrs V Adams , who completed a recently refurbished apartment in Kirkdale in May 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparable properties in Kirkdale with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 collected monthly. The lease lapsed in 2097. Considering the 71 years unexpired we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.