Kirton in Lindsey leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Kirton in Lindsey residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Kirton in Lindsey you really ought to check if your lease has between 70 and ninety years left. There are good reasons why a Kirton in Lindsey leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
Gabriel owned a high value apartment in Kirton in Lindsey on the market with a lease of a little over fifty eight years unexpired. Gabriel informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be due on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2011 we were phoned by Mr and Mrs. O Harris who, having purchased a one bedroom flat in Kirton in Lindsey in April 2007. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Comparable properties in Kirton in Lindsey with 100 year plus lease were valued about £210,600. The mid-range amount of ground rent was £45 billed every twelve months. The lease ran out in 2088. Considering the 62 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus professional charges.
In 2011 we were phoned by Dr S Torres who, having purchased a recently refurbished flat in Kirton in Lindsey in April 2000. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar premises in Kirton in Lindsey with a long lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease finished in 2098. Given that there were 72 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.