There is no doubt about it a leasehold flat or house in Kingsbridge is a wasting asset as a result of the shortening lease. If the lease has, over 100 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner rather than later. The majority of flat owners in Kingsbridge will meet the qualifying criteria; nevertheless a conveyancer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
Regardless of whether you are a tenant or a freeholder in Kingsbridge,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kingsbridge valuers.
Last year Jason, came very close to the eighty-year mark with the lease on his one bedroom apartment in Kingsbridge. In buying his flat 19 years previously, the lease term was of no relevance. by good luck, he recognised he needed to take action soon on a lease extension. Jason extended the lease just under the wire last May. Jason and the landlord eventually settled on the final figure of £5,500 . If he not met the deadline, the premium would have gone up by a minimum £1,000.
In 2013 we were phoned by Mr and Mrs. K Reed who, having purchased a newly refurbished apartment in Kingsbridge in April 2008. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Kingsbridge with a long lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease lapsed in 2096. Taking into account 71 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
In 2011 we were approached by Mrs Jordan Peterson who, having owned a one bedroom apartment in Kingsbridge in September 2005. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparable premises in Kingsbridge with an extended lease were in the region of £225,800. The average ground rent payable was £60 collected yearly. The lease ended on 15 September 2085. Considering the 60 years left we approximated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 exclusive of legals.