It’s an underpublicised truth that a Kirkheaton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Kirkheaton property market.Where your lease has approximately 90 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 slips under eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Kirkheaton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in Kirkheaton with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Kirkheaton,the lease extension lawyers 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 Kirkheaton valuers.
18 months ago Henry, came perilously close to the eighty-year threshold with the lease on his leasehold flat in Kirkheaton. In buying his property twenty years ago, the lease term was of no concern. Fortunately, he realised he needed to take action soon on a lease extension. Henry arranged for a lease extension at the eleventh hour in July. Henry and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If the lease had dipped below 80 years, the amount would have become more exhorbitant by a minimum £900.
In 2014 we were called by Mrs Megan Roux who, having completed a studio apartment in Kirkheaton in March 2010. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative flats in Kirkheaton with an extended lease were valued around £176,200. The mid-range amount of ground rent was £65 billed yearly. The lease end date was in 2082. Given that there were 56 years remaining we calculated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including legals.
Mr and Mrs. J Rose owned a first floor flat in Kirkheaton in January 1999. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar homes in Kirkheaton with 100 year plus lease were valued around £237,600. The mid-range ground rent payable was £45 collected per annum. The lease ended in 2093. Taking into account 67 years left we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of fees.