Kirkwhelpington leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Kirkwhelpington tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Kirkwhelpington you really ought to check if your lease has between 70 and 90 years remaining. There are good reasons why a Kirkwhelpington leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Kirkwhelpington can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 Kirkwhelpington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Jamie, came dangerously near to the 80-year mark with the lease on his ground floor flat in Kirkwhelpington. In buying his home 19 years previously, the length of the lease was of no bearing. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Jamie was able to extend his lease just under the wire in January. Jamie and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If the lease had dropped to less than eighty years, the sum would have increased by at least £875.
Last year we were phoned by Mr and Mrs. R Cooper , who owned a one bedroom flat in Kirkwhelpington in August 1995. The question was if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Identical flats in Kirkwhelpington with 100 year plus lease were valued about £264,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease expired in 2078. Taking into account 53 years unexpired we approximated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of expenses.
Last July we were phoned by Mr and Mrs. P Brown , who owned a basement apartment in Kirkwhelpington in January 2008. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative homes in Kirkwhelpington with a long lease were valued around £225,400. The average ground rent payable was £45 invoiced monthly. The lease lapsed on 27 October 2089. Considering the 64 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of expenses.