It’s an underpublicised certainty that a Kelsall residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Kelsall property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. The majority of flat owners in Kelsall will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 landlord 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.
16 months ago John, came seriously close to the eighty-year threshold with the lease on his first floor flat in Kelsall. Having purchased his flat two decades ago, the unexpired term was of little bearing. Thankfully, he recognised he needed to take steps soon on a lease extension. John arranged for a lease extension at the eleventh hour in September. John and the freeholder via the management company subsequently settled on the final figure of £6,000 . If he failed to meet the deadline, the amount would have escalated by a minimum £900.
Mr and Mrs. E Rogers bought a one bedroom apartment in Kelsall in May 2000. We are asked if we could estimate the premium would be to extend the lease by ninety years. Identical flats in Kelsall with an extended lease were in the region of £174,200. The average ground rent payable was £55 billed quarterly. The lease ran out in 2076. Having 51 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including fees.
Dr Aarav Roberts owned a newly refurbished apartment in Kelsall in April 2009. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Kelsall with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 billed per annum. The lease expired on 26 August 2096. Given that there were 71 years unexpired we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.