When it comes to domestic leasehold property in Kempsey, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Leasehold owners in Kempsey with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has below eighty years remaining, under the current legislation the freeholder can calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Santander | |
| Virgin |
The lawyers that we work with procure Kempsey lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Elijah owned a 2 bedroom apartment in Kempsey on the market with a lease of fraction over 59 years unexpired. Elijah on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2014 we were contacted by Dr James Khan who, having took over the lease of a first floor flat in Kempsey in October 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Kempsey with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £50 invoiced per annum. The lease finished in 2101. Considering the 75 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.
In 2014 we were called by Ms Ellie Baker who, having completed a studio apartment in Kempsey in November 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Kempsey with a long lease were in the region of £250,400. The average amount of ground rent was £65 invoiced quarterly. The lease lapsed on 5 July 2090. Given that there were 64 years remaining we estimated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of professional charges.