The re-sale value of a leasehold property in Kegworth depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that formalities can be concluded well before the 80 year cut off point. Leasehold Reform legislation entitles Kegworth qualifying lessees to an additional term of ninety years over and above the existing term, at a nominal rent (zero ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Kegworth with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
The conveyancers that we work with procure Kegworth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last October Felix, came critically near to the 80-year mark with the lease on his two bedroom flat in Kegworth. Having bought his home two decades ago, the unexpired term was of minimal interest. by good luck, he realised he would soon be paying an escalated premium for a lease extension. Felix extended the lease just in the nick of time last June. Felix and the landlord who owned the flat above eventually settled on a premium of £6,000 . If the lease had fallen below 80 years, the sum would have become more exhorbitant by a minimum £875.
Mr and Mrs. N Jones was assigned a lease of a one bedroom flat in Kegworth in March 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Kegworth with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 billed monthly. The lease ran out in 2101. Taking into account 75 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
Mr Cameron Scott owned a one bedroom apartment in Kegworth in February 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Kegworth with a long lease were worth £168,800. The average amount of ground rent was £60 collected yearly. The lease terminated on 7 July 2081. Given that there were 55 years remaining we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including legals.