Kingsbridge leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Kingsbridge residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Kingsbridge you really ought to check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 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.
Hugo was the the leasehold proprietor of a high value flat in Kingsbridge being marketed with a lease of a few days over 72 years remaining. Hugo on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Hugo to invoke his statutory right. Hugo procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last year we were phoned by Ms Grace Evans , who moved into a recently refurbished apartment in Kingsbridge in May 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable properties in Kingsbridge with an extended lease were valued around £233,200. The mid-range ground rent payable was £60 billed yearly. The lease finished in 2087. Considering the 61 years as a residual term we approximated the premium to the landlord to extend the lease to be within £22,800 and £26,400 plus costs.
In 2013 we were contacted by Mr and Mrs. V Adams who, having completed a first floor apartment in Kingsbridge in March 2002. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative premises in Kingsbridge with a long lease were valued about £166,800. The average ground rent payable was £55 billed annually. The lease concluded on 2 March 2076. Having 50 years outstanding we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of legals.