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 prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Higher Kinnerton. Clearly, the term of lease remaining reduces over time. This is often overlooked and only becomes a problem when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Higher Kinnerton have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do give careful consideration before putting off your Higher Kinnerton lease extension. Putting off the cost now only increases the price you will eventually incur for a lease extension
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Higher Kinnerton can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Higher Kinnerton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Blake owned a high value apartment in Higher Kinnerton on the market with a lease of a little over 59 years remaining. Blake informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be due on a lease extension were Blake to invoke his statutory right. Blake obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last Christmas we were e-mailed by Mr Kian Martínez , who completed a studio apartment in Higher Kinnerton in January 1999. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Higher Kinnerton with a long lease were worth £275,000. The average ground rent payable was £55 collected annually. The lease elapsed on 20 November 2102. Given that there were 77 years remaining we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.
Mr Seth Carter moved into a newly refurbished apartment in Higher Kinnerton in March 2008. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Identical flats in Higher Kinnerton with a long lease were worth £183,600. The average amount of ground rent was £65 billed every twelve months. The lease finished on 5 February 2082. Given that there were 57 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus expenses.