The only way is down when it comes to Kelsall lease terms. Kelsall properties that have a remaining term lower than eighty years will de-escalate in value at a rapid rate, and the cost to extend your lease will go up.
Leasehold residencies in Kelsall with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Kelsall,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kelsall valuers.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her two bedroom flat in Kelsall, Katie initiated the lease extension process as the 80 year mark was fast advancing. The transaction was concluded in June 2011. The freeholder’s fees were kept to an absolute minimum.
Last Spring we were contacted by Dr N Torres , who moved into a one bedroom flat in Kelsall in March 2011. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Kelsall with an extended lease were worth £189,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease expired in 2078. Taking into account 53 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.
Last year we were phoned by Mr and Mrs. V Clarke , who moved into a newly refurbished flat in Kelsall in April 2005. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Similar homes in Kelsall with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 collected yearly. The lease lapsed in 2098. Considering the 73 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.