The value of Higher Kinnerton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Nationwide Building Society | |
| Santander | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Using our service gives you enhanced control over the value of your Higher Kinnerton leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Felix owned a 2 bedroom apartment in Higher Kinnerton on the market with a lease of a few days over 59 years remaining. Felix on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Felix to exercise his statutory right. Felix obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2010 we were phoned by Dr Paige Lee who, having purchased a first floor apartment in Higher Kinnerton in March 2003. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar premises in Higher Kinnerton with a long lease were worth £168,800. The average ground rent payable was £60 collected quarterly. The lease elapsed on 6 February 2081. Having 55 years left we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus expenses.
In 2010 we were called by Dr J Sánchez who, having completed a basement apartment in Higher Kinnerton in August 2005. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Higher Kinnerton with a long lease were worth £235,200. The mid-range amount of ground rent was £45 billed monthly. The lease concluded on 13 March 2092. Given that there were 66 years unexpired we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.