Kirkheaton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Kirkheaton tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Kirkheaton you must see if your lease has between 70 and ninety years left. There are good reasons why a Kirkheaton leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is effected without delay
Leasehold properties in Kirkheaton with more than one hundred years left 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 reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Kirkheaton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kirkheaton valuers.
Twenty four months ago Ryan, started to get near to the 80-year mark with the lease on his leasehold apartment in Kirkheaton. In buying his flat 19 years previously, the lease term was of little significance. As luck would have it, he noticed he needed to take action soon on a lease extension. Ryan extended the lease just under the wire in August. Ryan and the freeholder via the managing agents subsequently agreed on an amount of £5,000 . If he had missed the deadline, the price would have increased by at least £975.
In 2010 we were contacted by Mrs Alexandra David who, having bought a one bedroom apartment in Kirkheaton in March 2004. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable homes in Kirkheaton with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 invoiced yearly. The lease came to a finish on 24 July 2080. Considering the 54 years outstanding we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus expenses.
Last May we were phoned by Mr and Mrs. L Hall , who took over the lease of a one bedroom apartment in Kirkheaton in March 2007. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Kirkheaton with an extended lease were valued around £227,800. The average ground rent payable was £45 invoiced yearly. The lease ended in 2091. Having 65 years left we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.