Kingsbridge leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Kingsbridge will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some situations you may not be entitled. There are also strict timetables and steps to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Kingsbridge with over one hundred years left 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 reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Kingsbridge 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.
16 months ago Daniel, came critically near to the 80-year mark with the lease on his basement flat in Kingsbridge. In buying his home 19 years ago, the length of the lease was of minimal bearing. As luck would have it, he realised he needed to take steps soon on Extending the lease. Daniel was able to extend his lease just under the wire in May. Daniel and the freeholder via the managing agents ultimately agreed on sum of £5,500 . If the lease had dropped to less than 80 years, the price would have escalated by a minimum £1,000.
Mr and Mrs. N Morris bought a purpose-built flat in Kingsbridge in March 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Similar premises in Kingsbridge with an extended lease were valued about £223,400. The average ground rent payable was £60 invoiced yearly. The lease expired in 2085. Taking into account 59 years remaining we approximated the premium to the landlord for the lease extension to be between £27,600 and £31,800 plus expenses.
Dr I André acquired a ground floor flat in Kingsbridge in July 2009. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative properties in Kingsbridge with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected yearly. The lease lapsed in 2105. Taking into account 79 years remaining we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.