Kelsall leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Flat owners in Kelsall will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Kelsall with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancers that we work with handle Kelsall lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After lengthy negotiations with the landlord of her studio flat in Kelsall, Anna commenced the lease extension process just as the lease was nearing the all-important eighty-year mark. The lease extension was concluded in September 2005. The landlord’s fees were kept to an absolute minimum.
Last Summer we were approach by Mrs Stephanie Ali , who moved into a first floor apartment in Kelsall in November 2000. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable residencies in Kelsall with a long lease were worth £300,000. The average amount of ground rent was £50 billed every twelve months. The lease lapsed in 2101. Having 76 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.
In 2012 we were phoned by Dr Luca Dupont who, having owned a first floor flat in Kelsall in October 2012. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable residencies in Kelsall with an extended lease were in the region of £257,800. The mid-range amount of ground rent was £65 billed per annum. The lease end date was on 18 May 2090. Taking into account 65 years outstanding we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of expenses.