Chances are that where you own a flat in Kegworth you actually own a long leasehold interest over your property
Leasehold premises in Kegworth with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | 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 Kegworth,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kegworth valuers.
Hugo was the the leasehold owner of a high value apartment in Kegworth on the market with a lease of a few days over 59 years left. Hugo informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
In 2011 we were approached by Mr C Allen who, having completed a first floor apartment in Kegworth in August 2000. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative properties in Kegworth with 100 year plus lease were valued around £265,000. The mid-range amount of ground rent was £50 collected yearly. The lease lapsed on 6 January 2098. Taking into account 73 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
In 2010 we were phoned by Dr H Lefèvre who, having bought a newly refurbished flat in Kegworth in April 2000. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparable residencies in Kegworth with a long lease were valued about £264,000. The mid-range amount of ground rent was £60 collected quarterly. The lease termination date was on 12 August 2078. Given that there were 53 years remaining we calculated the premium to the landlord to extend the lease to be within £37,100 and £42,800 plus professional charges.