For anyone whose Kirkwhelpington home is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Kirkwhelpington,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kirkwhelpington valuers.
In recent months Daniel, came critically near to the 80-year mark with the lease on his two bedroom apartment in Kirkwhelpington. In buying his property 19 years ago, the lease term was of no relevance. Fortunately, he became aware that he needed to take steps soon on a lease extension. Daniel was able to extend his lease just ahead of time last September. Daniel and the freeholder via the management company eventually agreed on a premium of £5,000 . If he not met the deadline, the premium would have become more exhorbitant by at least £1,000.
Last Christmas we were phoned by Mr and Mrs. S Martinez , who bought a one bedroom apartment in Kirkwhelpington in February 1998. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative properties in Kirkwhelpington with a long lease were valued about £280,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease end date was in 2102. Having 77 years remaining we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.
In 2014 we were e-mailed by Mrs Danielle Phillips who, having completed a first floor apartment in Kirkwhelpington in November 2003. We are asked if we could approximate the price would be to extend the lease by an additional years. Similar premises in Kirkwhelpington with an extended lease were worth £183,600. The average amount of ground rent was £65 collected per annum. The lease finished on 21 March 2082. Considering the 57 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.