Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Kirton in Lindsey. Inevitably, the length of lease left shortens as time goes by. This is often ignored and only becomes a problem when the property needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Kirton in Lindsey have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. You should give careful deliberation before putting off your Kirton in Lindsey lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
Leasehold properties in Kirton in Lindsey with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Kirton in Lindsey can be a difficult process. We recommend you get professional help from a lawyer 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 in-depth market knowledge dealing with Kirton in Lindsey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Ethan, came perilously near to the 80-year mark with the lease on his basement apartment in Kirton in Lindsey. Having bought his flat 19 years previously, the lease term was of little bearing. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Ethan arranged for a lease extension just under the wire last January. Ethan and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If the lease had dipped below 80 years, the premium would have become more costly by a minimum £1,100.
Last Spring we were phoned by Dr S Ricardo , who took over the lease of a one bedroom apartment in Kirton in Lindsey in January 2004. The question was if we could estimate the price would be to prolong the lease by an additional years. Comparable properties in Kirton in Lindsey with 100 year plus lease were valued around £193,400. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease finished on 15 October 2084. Having 59 years outstanding we approximated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 not including fees.
Ms P Alexander completed a purpose-built apartment in Kirton in Lindsey in August 2001. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Identical premises in Kirton in Lindsey with an extended lease were worth £250,000. The average ground rent payable was £50 billed monthly. The lease elapsed on 23 June 2095. Having 70 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.