When it comes to residential leasehold property in Kirkheaton, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Anyone in Kirkheaton with a lease approaching 81 years left should seriously consider extending it as soon as possible. When a lease has less than eighty years remaining, under the relevant statute the freeholder is entitled to calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
The conveyancers that we work with undertake Kirkheaton 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 conveyancer we work with provide it.
Off the back of lengthy correspondence with the landlord of her one bedroom flat in Kirkheaton, Isabelle commenced the lease extension process just as the lease was coming close to the critical 80-year threshold. The transaction was finalised in April 2013. The landlord’s fees were restricted to slightly above 500 pounds.
Last month we were phoned by Mr and Mrs. K Campbell , who bought a studio apartment in Kirkheaton in March 2003. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Comparative properties in Kirkheaton with an extended lease were valued around £280,000. The mid-range amount of ground rent was £55 collected annually. The lease terminated in 2103. Having 78 years remaining we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.
Last Christmas we were e-mailed by Ms O Johnson , who owned a first floor apartment in Kirkheaton in March 2003. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical homes in Kirkheaton with 100 year plus lease were worth £186,000. The average ground rent payable was £65 invoiced yearly. The lease elapsed on 18 February 2083. Having 58 years left we estimated the premium to the landlord for the lease extension to be within £24,700 and £28,600 exclusive of legals.