With a domestic leasehold property in Kirkstall, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than eighty years left. Residents in Kirkstall with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has below 80 years left, under the relevant statute the freeholder can calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Kirkstall with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| 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 also be not less than 75 years 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Kirkstall,the lease extension experts 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 Kirkstall valuers.
In the wake of 6 months of lengthy discussions with the landlord of her first floor flat in Kirkstall, Isabella commenced the lease extension process as the 80 year mark was fast approaching. The lease extension was concluded in October 2011. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. U Michel bought a one bedroom flat in Kirkstall in March 2008. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparative flats in Kirkstall with a long lease were in the region of £245,000. The average amount of ground rent was £45 invoiced yearly. The lease expired in 2093. Having 68 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
Mr and Mrs. D Gómez completed a basement flat in Kirkstall in January 2011. We are asked if we could estimate the price could be for a ninety year lease extension. Similar residencies in Kirkstall with an extended lease were worth £280,000. The average ground rent payable was £55 invoiced per annum. The lease lapsed in 2104. Taking into account 79 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.