Kemp Town leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease drops under 80 years - otherwise a higher amount will be due. Flat owners in Kemp Town will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some situations you may not qualify. There are also strict deadlines and steps to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Kemp Town with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Kemp Town,the lease extension solicitors 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 Kemp Town valuers.
Off the back of protracted discussions with the freeholder of her first floor flat in Kemp Town, Natalie initiated the lease extension process as the 80 year mark was fast nearing. The lease extension completed in February 2007. The freeholder’s costs were restricted to slightly above 450 GBP.
Last July we were phoned by Dr David Campbell , who acquired a recently refurbished apartment in Kemp Town in February 2005. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar premises in Kemp Town with a long lease were worth £200,000. The average ground rent payable was £50 billed monthly. The lease came to a finish in 2103. Given that there were 78 years outstanding we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.
In 2009 we were contacted by Dr Paige Wilson who, having bought a garden flat in Kemp Town in September 2001. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative premises in Kemp Town with 100 year plus lease were worth £267,600. The mid-range ground rent payable was £65 invoiced quarterly. The lease terminated in 2092. Taking into account 67 years left we estimated the premium to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of professional charges.