For anyone whose Kempsey property is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold premises in Kempsey with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 get professional help from a conveyancing solicitor and valuer with experience in this area.
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 a wealth of experience 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.
Harvey owned a studio flat in Kempsey being marketed with a lease of fraction over 61 years outstanding. Harvey informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harvey to exercise his statutory right. Harvey obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Dr Madeleine Harris completed a one bedroom flat in Kempsey in October 1998. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Comparative premises in Kempsey with 100 year plus lease were valued around £243,000. The mid-range amount of ground rent was £65 collected yearly. The lease terminated in 2089. Considering the 63 years unexpired we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus costs.
Mrs Amy Gunderson purchased a purpose-built apartment in Kempsey in July 2001. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparative premises in Kempsey with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 invoiced annually. The lease elapsed on 19 March 2078. Given that there were 52 years unexpired we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of fees.