Unfortunately that a Kelvedon residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Kelvedon property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. The majority of flat owners in Kelvedon will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Kelvedon can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor 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 in-depth market knowledge procuring Kelvedon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Theo, came critically near to the eighty-year threshold with the lease on his ground floor flat in Kelvedon. Having purchased his property 19 years previously, the unexpired term was of minimal importance. by good luck, he noticed he needed to take steps soon on Extending the lease. Theo arranged for a lease extension just under the wire last April. Theo and the freeholder subsequently settled on a premium of £6,000 . If the lease had dropped to less than 80 years, the sum would have escalated by at least £850.
In 2009 we were approached by Dr Leah Williams who, having bought a one bedroom apartment in Kelvedon in January 2008. The question was if we could estimate the premium would be to extend the lease by an additional years. Identical properties in Kelvedon with 100 year plus lease were in the region of £290,000. The average ground rent payable was £60 collected annually. The lease ran out in 2106. Having 80 years outstanding we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.
Mr Joseph Torres purchased a studio flat in Kelvedon in June 1998. The question was if we could approximate the price could be for a 90 year lease extension. Identical properties in Kelvedon with a long lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease expired on 26 February 2086. Considering the 60 years as a residual term we approximated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of costs.