For those whose Kelsall home is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
Leasehold properties in Kelsall with over 100 years outstanding 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Kelsall,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kelsall valuers.
Last October Evan, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Kelsall. In buying his flat twenty years previously, the lease term was of minimal bearing. Luckily, he realised he needed to take steps soon on a lease extension. Evan was able to extend his lease just in the nick of time in March. Evan and the landlord in the end agreed on an amount of £6,000 . If the lease had dropped lower than eighty years, the amount would have escalated by at least £950.
Ms Y Girard acquired a basement apartment in Kelsall in February 2005. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative properties in Kelsall with a long lease were worth £240,600. The average ground rent payable was £65 invoiced annually. The lease came to a finish in 2088. Given that there were 62 years outstanding we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of costs.
In 2014 we were called by Mr Connor Torres who, having completed a ground floor flat in Kelsall in September 2004. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable premises in Kelsall with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 invoiced yearly. The lease came to a finish in 2078. Having 52 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus costs.