With a residential leasehold premises in Kingsbridge, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years left. Residents in Kingsbridge with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once a lease has below 80 years remaining, under the current legislation the freeholder is entitled to calculate and charge a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Kingsbridge with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Kingsbridge can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Kingsbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy negotiations with the landlord of her basement flat in Kingsbridge, Samantha started the lease extension process as the eighty year deadline was swiftly approaching. The transaction was concluded in August 2012. The freeholder’s costs were negotiated to less than 550 pounds.
Dr J Mercier owned a one bedroom apartment in Kingsbridge in March 2006. The question was if we could estimate the price could be to prolong the lease by a further 90 years. Identical homes in Kingsbridge with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 billed yearly. The lease came to a finish on 24 May 2099. Having 73 years outstanding we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.
In 2013 we were phoned by Mr and Mrs. T Rogers who, having completed a ground floor flat in Kingsbridge in June 2000. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar residencies in Kingsbridge with an extended lease were valued around £240,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease concluded on 16 May 2088. Having 62 years outstanding we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of expenses.