Kirkheaton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Kirkheaton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Kirkheaton you should see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally considered that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Kirkheaton can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Kirkheaton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the landlord of her leasehold flat in Kirkheaton, Naomi commenced the lease extension process just as her lease was nearing the crucial eighty-year deadline. The lease extension was concluded in January 2008. The landlord’s costs were restricted to slightly above 650 GBP.
In 2011 we were called by Dr M Phillips who, having moved into a studio flat in Kirkheaton in January 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Identical homes in Kirkheaton with 100 year plus lease were valued about £203,200. The average ground rent payable was £65 billed every twelve months. The lease ended on 13 May 2087. Given that there were 61 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 not including costs.
Ms N Brooks took over the lease of a basement apartment in Kirkheaton in September 2011. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Similar flats in Kirkheaton with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease concluded on 9 August 2098. Having 72 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.