With a long leasehold premises in Kirton in Lindsey, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are less than 80 years remaining. Leasehold owners in Kirton in Lindsey with a lease nearing 81 years left should seriously think of extending it sooner rather than later. When a lease has below eighty years remaining, under the current Act the freeholder is entitled to calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Kirton in Lindsey with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with procure Kirton in Lindsey 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 conveyancer we work with provide it.
Sebastian owned a high value apartment in Kirton in Lindsey being marketed with a lease of fraction over fifty eight years outstanding. Sebastian informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Ms L Fournier moved into a ground floor flat in Kirton in Lindsey in June 2005. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Kirton in Lindsey with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 billed annually. The lease lapsed on 19 August 2096. Given that there were 71 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
In 2013 we were e-mailed by Dr P Anderson who, having owned a basement apartment in Kirton in Lindsey in July 1999. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Identical homes in Kirton in Lindsey with 100 year plus lease were worth £249,200. The mid-range amount of ground rent was £60 collected annually. The lease elapsed in 2076. Having 51 years outstanding we estimated the premium to the landlord for the lease extension to be within £42,800 and £49,400 exclusive of costs.