Kemp Town leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the current lease dips lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Kemp Town will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and steps to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Nationwide Building Society |
Engaging our service gives you increased control over the value of your Kemp Town leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Arthur, came dangerously close to the 80-year threshold with the lease on his purpose- built apartment in Kemp Town. In buying his property two decades ago, the lease term was of no concern. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Arthur extended the lease just under the wire in March. Arthur and the landlord subsequently agreed on a premium of £5,000 . If the lease had dropped lower than eighty years, the figure would have escalated by a minimum £1,125.
Last Spring we were phoned by Mr Zachary Mercier , who owned a studio flat in Kemp Town in January 2009. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Kemp Town with 100 year plus lease were worth £257,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease lapsed in 2091. Taking into account 65 years unexpired we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 not including professional charges.
In 2014 we were phoned by Mr Finley Patel who, having acquired a one bedroom flat in Kemp Town in July 1999. The dilemma was if we could estimate the price would be to prolong the lease by 90 years. Comparative premises in Kemp Town with 100 year plus lease were valued about £191,400. The average ground rent payable was £55 billed every twelve months. The lease elapsed on 10 August 2080. Taking into account 54 years left we estimated the premium to the landlord for the lease extension to be within £34,200 and £39,600 plus costs.