When it comes to long leasehold premises in Kirkstall, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years remaining. Residents in Kirkstall with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. Once a lease has less than 80 years remaining, under the current legislation the freeholder can calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Coventry Building Society | |
| TSB |
The lawyers that we work with procure Kirkstall 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.
Last October Ibrahim, started to get close to the eighty-year mark with the lease on his two bedroom flat in Kirkstall. Having purchased his home two decades ago, the lease term was of little bearing. Thankfully, he realised he would imminently be paying way over the odds for Extending the lease. Ibrahim extended the lease just in the nick of time last August. Ibrahim and the freeholder in the end settled on a premium of £5,000 . If the lease had gone to less than eighty years, the premium would have escalated by at least £1,075.
Mr and Mrs. V Torres took over the lease of a purpose-built apartment in Kirkstall in February 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative homes in Kirkstall with 100 year plus lease were valued around £250,000. The average amount of ground rent was £50 invoiced annually. The lease concluded on 16 January 2095. Given that there were 69 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Last Winter we were contacted by Dr John Robinson , who was assigned a lease of a ground floor apartment in Kirkstall in April 2003. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparative properties in Kirkstall with a long lease were worth £290,000. The mid-range amount of ground rent was £60 billed quarterly. The lease elapsed on 9 September 2106. Taking into account 80 years left we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.