Kingsbridge leases on residential deteriorating in value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the current lease dips below eighty years - otherwise a higher premium will be due. Leasehold owners in Kingsbridge will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Kingsbridge with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. 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 |
|---|---|
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Kingsbridge,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kingsbridge valuers.
Jacob was the the leasehold owner of a high value flat in Kingsbridge being sold with a lease of just over sixty years outstanding. Jacob informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jacob to invoke his statutory right. Jacob obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last year we were called by Dr J Bonnet , who moved into a first floor apartment in Kingsbridge in May 2000. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical residencies in Kingsbridge with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease lapsed on 8 August 2083. Taking into account 58 years remaining we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of legals.
Last Summer we were e-mailed by Mr Ibrahim Bailey , who acquired a studio apartment in Kingsbridge in March 2000. We are asked if we could approximate the price would be to prolong the lease by 90 years. Identical premises in Kingsbridge with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed monthly. The lease termination date was on 26 July 2103. Taking into account 78 years left we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.