The market value of Kelvedon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the unexpired lease term is less than 80 years
Leasehold properties in Kelvedon with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Kelvedon,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kelvedon valuers.
Luca was the the leasehold owner of a high value apartment in Kelvedon being sold with a lease of just over 72 years remaining. Luca informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Luca to exercise his statutory right. Luca procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Dr Hannah Smith owned a one bedroom flat in Kelvedon in April 2005. The dilemma was if we could approximate the price could be for a ninety year lease extension. Identical residencies in Kelvedon with a long lease were in the region of £237,600. The mid-range amount of ground rent was £45 invoiced annually. The lease came to a finish on 19 April 2092. Having 67 years remaining we approximated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of legals.
Last Spring we were phoned by Dr O Ricardo , who acquired a newly refurbished apartment in Kelvedon in November 2008. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparative properties in Kelvedon with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 collected yearly. The lease expired in 2103. Taking into account 78 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of fees.