There is no doubt about it a leasehold property in Kirkstall is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. Many flat owners in Kirkstall will meet the qualifying criteria; however a conveyancing solicitor should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Kirkstall with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle 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 conveyancing solicitor we work with provide it.
Nathaniel owned a studio flat in Kirkstall being marketed with a lease of fraction over 61 years unexpired. Nathaniel on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Nathaniel to exercise his statutory right. Nathaniel obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Last month we were e-mailed by Mr and Mrs. L Brooks , who took over the lease of a ground floor apartment in Kirkstall in May 1999. 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 ninety years. Comparable properties in Kirkstall with a long lease were in the region of £260,000. The average amount of ground rent was £50 collected every twelve months. The lease finished in 2098. Having 72 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. D Martinez acquired a one bedroom apartment in Kirkstall in March 2002. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable properties in Kirkstall with an extended lease were worth £261,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease concluded on 28 May 2078. Having 52 years left we calculated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of professional charges.