There is no doubt about it a leasehold property in Kimbolton is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 99 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Kimbolton will meet the qualifying criteria; however a conveyancer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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; |
| Lloyds TSB Scotland | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Kimbolton can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in this area.
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 Kimbolton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Ibrahim, came critically near to the 80-year threshold with the lease on his first floor flat in Kimbolton. In buying his property two decades ago, the length of the lease was of little bearing. by good luck, he recognised he would soon be paying an escalated premium for a lease extension. Ibrahim arranged for a lease extension just in the nick of time last March. Ibrahim and the freeholder via the managing agents subsequently settled on the final figure of £6,000 . If he not met the deadline, the premium would have become more exhorbitant by at least £1,125.
Mr and Mrs. G Morgan owned a garden flat in Kimbolton in August 2003. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative premises in Kimbolton with 100 year plus lease were valued around £208,600. The average amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2082. Taking into account 57 years left we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 not including professional charges.
Last month we were phoned by Mr and Mrs. B Murphy , who was assigned a lease of a one bedroom apartment in Kimbolton in September 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Similar properties in Kimbolton with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease concluded in 2102. Considering the 77 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.