Main reasons to start your Kenley lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3>
Main reasons to commence your Kenley lease extension today:
</h3>
<h4>
Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/kenley">Kenley</a> property value </h4>
<p> Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Kenley. Inevitably, the period of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Eligible leaseholders in Kenley have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give due consideration before putting off your Kenley lease extension. Putting off that expense now only increases the price you will ultimately have to pay for a lease extension <h4>An extended lease is almost the same value as a freehold</h4>
<p>
Leasehold properties in Kenley with over one hundred 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it. <h4>Lending institutions will not issue a mortgage on a short lease</h4> Banks and Building Societies have set criteria when lending monies secured on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term slips below a certain unexpired lease term. Many Lending institutions will not consider property with a remaining term of less than 75 years suitable security. As well as impacting your ability to sell, it is also relevant if you are intending to refinance your Kenley property.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Accord Mortgages</td>
<td> 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.
</tr>
<tr>
<td>Coventry Building Society</td>
<td> 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.
</tr>
<tr>
<td>Godiva Mortgages</td>
<td> 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.
</tr>
<tr>
<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
</tr>
<tr>
<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
</tr>
</tbody>
</table>
</div>
</div>
<h4> Get in touch with one of our Kenley lease extension solicitors or enfranchisement solicitors
</h4>
<p> Retaining our service gives you enhanced control over the value of your Kenley leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell.
The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Kenley Lease Extension Case Studies:
</h4>
<h5> Ella, Kenley, Surrey,</h5>
<p> Subsequent to unsuccessful negotiations with the freeholder of her one bedroom apartment in Kenley, Ella initiated the lease extension process just as her lease was approaching the all-important 80-year threshold. The transaction completed in July 2012. The freeholder’s costs were kept to an absolute minimum.
<h5>Kenley case:</h5>
<p>
In 2014 we were e-mailed by Mr and Mrs. R Clarke who, having was assigned a lease of a basement apartment in Kenley in May 2009. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical flats in Kenley with an extended lease were valued around £183,600. The mid-range amount of ground rent was £65 billed annually. The lease finished on 9 February 2083. Considering the 57 years remaining we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including professional charges.
<div> <h5>Decision in Croydon</h5>
<p>
An example of a Freehold Enfranchisement decision for a Kenley property is
The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912.
This case affected 6 flats. The unexpired term was 78.32 years.
</p>
</div>
</div>