Unfortunately that a Kirkheaton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Kirkheaton property prices.Where your lease has approximately ninety years left, you should start thinking about 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 falls below eighty years - otherwise a higher premium will be payable. The majority of flat owners in Kirkheaton will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Kirkheaton with over one hundred 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Birmingham Midshires | 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 75 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle 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 conveyancing solicitor we work with provide it.
After protracted negotiations with the freeholder of her two bedroom flat in Kirkheaton, Megan started the lease extension process just as the lease was approaching the all-important 80-year mark. The legal work completed in June 2010. The landlord’s charges were negotiated to below 450 pounds.
Last Christmas we were approach by Dr M Hall , who purchased a one bedroom apartment in Kirkheaton in March 2007. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Identical premises in Kirkheaton with an extended lease were in the region of £265,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ran out on 3 June 2099. Considering the 73 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
Last Summer we were e-mailed by Mr and Mrs. U Bonnet , who bought a garden flat in Kirkheaton in May 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable premises in Kirkheaton with an extended lease were valued about £264,000. The average ground rent payable was £60 invoiced yearly. The lease concluded in 2079. Having 53 years remaining we calculated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of costs.