As the the remaining lease term of a Kingsbridge residential lease diminished so does its value and therefore the value of your property. Where the lease has, beyond 100 years to run then this decrease may be of little impact nevertheless 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 be significant. It is the primary reason why you should extend the lease sooner as opposed to later. Many flat owners in Kingsbridge will qualify for this right; nevertheless a conveyancing solicitor can confirm if 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.
Leasehold properties in Kingsbridge with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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; |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Kingsbridge can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
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 dealing with Kingsbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Freddie, started to get near to the 80-year mark with the lease on his purpose- built flat in Kingsbridge. Having bought his flat two decades ago, the length of the lease was of minimal significance. by good luck, he became aware that he would imminently be paying way over the odds for a lease extension. Freddie arranged for a lease extension just in the nick of time in August. Freddie and the freeholder subsequently settled on an amount of £5,000 . If he not met the deadline, the premium would have gone up by a minimum £975.
In 2013 we were called by Mr and Mrs. U Bertrand who, having moved into a one bedroom apartment in Kingsbridge in August 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Kingsbridge with an extended lease were worth £208,600. The average ground rent payable was £60 invoiced annually. The lease lapsed on 18 September 2083. Taking into account 57 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of expenses.
Last Christmas we were e-mailed by Mr Luca Walker , who took over the lease of a one bedroom apartment in Kingsbridge in April 1996. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar premises in Kingsbridge with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected yearly. The lease ended on 25 November 2103. Given that there were 77 years outstanding we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.