The market value of a leasehold property in Kelvedon is impacted by how long the lease has left to run. If it is close to or less than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that all matters can be addressed ahead of the eighty year threshold. Leasehold Reform legislation entitles Kelvedon qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Skipton Building Society |
Lease extensions in Kelvedon can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge 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 2014 Ali, started to get near to the eighty-year threshold with the lease on his first floor apartment in Kelvedon. In buying his home 19 years previously, the unexpired term was of no significance. Luckily, he recognised he needed to take action soon on a lease extension. Ali arranged for a lease extension just ahead of time last September. Ali and the freeholder in the end agreed on sum of £5,000 . If the lease had dropped below 80 years, the sum would have increased by a minimum £1,000.
Last month we were called by Dr D Vincent , who took over the lease of a ground floor apartment in Kelvedon in November 1999. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Kelvedon with 100 year plus lease were worth £261,600. The average ground rent payable was £60 invoiced monthly. The lease ran out in 2078. Having 52 years outstanding we approximated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 not including expenses.
In 2009 we were called by Ms B Green who, having owned a one bedroom apartment in Kelvedon in November 1997. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar properties in Kelvedon with 100 year plus lease were worth £218,000. The average ground rent payable was £45 invoiced yearly. The lease terminated in 2089. Having 63 years outstanding we approximated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 not including professional charges.