Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Kempsey. Inevitably, the length of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Kempsey have the legal entitlement to extend the lease for a further ninety years under legislation. Do give due attention before putting off your Kempsey lease extension. Holding off the cost now simply increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire Building Society | 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. |
Lease extensions in Kempsey can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 procuring Kempsey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jack was the the leasehold owner of a conversion flat in Kempsey on the market with a lease of a little over sixty years remaining. Jack informally approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be payable on a lease extension were Jack to invoke his statutory right. Jack procured expert legal guidance and secured satisfactory deal informally and sell the property.
In 2012 we were called by Mr and Mrs. I Rose who, having purchased a first floor apartment in Kempsey in February 2012. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Identical properties in Kempsey with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease ended on 12 April 2096. Taking into account 70 years outstanding we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.
Ms Alice Nguyen acquired a purpose-built apartment in Kempsey in May 2005. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Kempsey with 100 year plus lease were worth £218,400. The average amount of ground rent was £60 billed annually. The lease ended on 16 November 2085. Having 59 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of expenses.