Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Kirkstall. Clearly, the length of lease left shortens over time. This is often overlooked and only raises itself as an issue when the flat or house has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in Kirkstall have the legal entitlement to extend the lease for an additional ninety years under statute. Please give careful deliberation before delaying your Kirkstall lease extension. Putting off that expense now only increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Yorkshire 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. |
Lease extensions in Kirkstall can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in this area.
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 a wealth of experience dealing with Kirkstall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the freeholder of her two bedroom apartment in Kirkstall, Bethany commenced the lease extension process just as her lease was nearing the critical eighty-year deadline. The legal work was finalised in January 2006. The landlord’s charges were restricted to approximately 550 pounds.
In 2014 we were called by Dr Henry Dupont who, having purchased a studio flat in Kirkstall in April 2008. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Identical premises in Kirkstall with a long lease were valued around £203,200. The average amount of ground rent was £65 invoiced monthly. The lease finished in 2086. Taking into account 61 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of professional charges.
In 2014 we were called by Mr Jacob Rivera who, having moved into a one bedroom flat in Kirkstall in June 2007. The question was if we could approximate the premium would be for a 90 year lease extension. Similar properties in Kirkstall with a long lease were valued around £260,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ended in 2097. Having 72 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.