With a domestic leasehold premises in Kelvedon, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Residents in Kelvedon with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. When a lease has below 80 years outstanding, under the current legislation the landlord is entitled to calculate and demand a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Kelvedon with in excess of 100 years left on the lease are often referred to as ‘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 buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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 are not acceptable. 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Kelvedon can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Kelvedon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Tyler, came precariously close to the eighty-year mark with the lease on his two bedroom apartment in Kelvedon. Having purchased his property twenty years ago, the unexpired term was of no significance. Fortunately, he recognised he needed to take action soon on Extending the lease. Tyler arranged for a lease extension at the eleventh hour in July. Tyler and the landlord ultimately agreed on the final figure of £6,000 . If he not met the deadline, the premium would have escalated by at least £1,050.
Mrs G Jackson completed a one bedroom apartment in Kelvedon in April 2004. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparable homes in Kelvedon with an extended lease were worth £275,000. The mid-range ground rent payable was £55 collected per annum. The lease ended in 2102. Considering the 76 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
In 2009 we were e-mailed by Mrs G Gómez who, having bought a purpose-built flat in Kelvedon in November 2011. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparable homes in Kelvedon with a long lease were worth £176,200. The mid-range amount of ground rent was £65 billed annually. The lease ran out on 4 September 2082. Having 56 years left we calculated the premium to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of professional charges.