Kempsey residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Kempsey can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 dealing with Kempsey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Milo was the the leasehold owner of a studio flat in Kempsey on the market with a lease of a few days over 59 years remaining. Milo informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Milo to exercise his statutory right. Milo obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2009 we were contacted by Mr and Mrs. H Brown who, having completed a studio apartment in Kempsey in April 2001. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Kempsey with a long lease were in the region of £174,200. The average amount of ground rent was £55 invoiced per annum. The lease elapsed in 2077. Given that there were 51 years remaining we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.
Last Autumn we were called by Mr M Michel , who completed a basement apartment in Kempsey in July 2003. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical residencies in Kempsey with 100 year plus lease were valued around £285,000. The average ground rent payable was £45 collected every twelve months. The lease lapsed on 9 April 2097. Taking into account 71 years remaining we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.