With a long leasehold premises in Kirton in Lindsey, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are less than 80 years left. Residents in Kirton in Lindsey with a lease drawing near to 81 years left should seriously think of extending it without delay. When the lease term has less than eighty years left, under the relevant Act the freeholder is entitled to calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence 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. |
| 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. |
| 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. |
Using our service will provide you enhanced control over the value of your Kirton in Lindsey leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the landlord of her ground floor flat in Kirton in Lindsey, Maisie started the lease extension process as the eighty year deadline was quickly approaching. The legal work completed in July 2009. The landlord’s fees were restricted to below five hundred pounds.
In 2012 we were e-mailed by Dr I Bernard who, having owned a first floor apartment in Kirton in Lindsey in July 1997. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Similar properties in Kirton in Lindsey with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease elapsed on 1 September 2098. Considering the 72 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
In 2010 we were phoned by Mrs Alexandra Norbert who, having owned a one bedroom apartment in Kirton in Lindsey in February 2010. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Identical premises in Kirton in Lindsey with an extended lease were worth £261,600. The mid-range amount of ground rent was £60 invoiced per annum. The lease finished in 2078. Taking into account 52 years unexpired we approximated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 plus fees.