For anyone whose Kelvedon flat is held on a long lease, the message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension.
Leasehold residencies in Kelvedon with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Kelvedon,the lease extension lawyers 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 Kelvedon valuers.
Off the back of protracted negotiations with the landlord of her one bedroom flat in Kelvedon, Lydia initiated the lease extension process as the 80 year deadline was swiftly nearing. The lease extension was finalised in April 2013. The landlord’s charges were negotiated to slightly above four hundred pounds.
In 2014 we were called by Dr J Simon who, having owned a one bedroom flat in Kelvedon in May 2009. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical residencies in Kelvedon with a long lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease finished on 28 March 2085. Considering the 60 years left we approximated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 plus expenses.
Mr S Hernández moved into a garden apartment in Kelvedon in November 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Kelvedon with a long lease were in the region of £255,000. The average amount of ground rent was £50 invoiced yearly. The lease expired in 2096. Given that there were 71 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.