Kingsbridge leases on domestic deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Kingsbridge will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some cases you may not qualify. There are also strict timetables and procedures to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Kingsbridge with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Kingsbridge can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 a wealth of experience procuring Kingsbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Gabriel, started to get near to the 80-year mark with the lease on his first floor apartment in Kingsbridge. Having bought his property twenty years previously, the length of the lease was of no relevance. by good luck, he recognised he would imminently be paying an inflated amount for Extending the lease. Gabriel was able to extend his lease just under the wire in September. Gabriel and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If the lease had slipped to less than 80 years, the sum would have gone up by a minimum £1,000.
In 2012 we were e-mailed by Dr H Vincent who, having bought a newly refurbished apartment in Kingsbridge in March 2002. We are asked if we could approximate the premium would be to extend the lease by 90 years. Similar homes in Kingsbridge with an extended lease were worth £225,800. The average ground rent payable was £60 collected annually. The lease elapsed in 2085. Having 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 not including costs.
Mr and Mrs. L Martin purchased a one bedroom flat in Kingsbridge in April 1995. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable homes in Kingsbridge with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ran out in 2105. Considering the 80 years remaining we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.