Top reasons for Kempsey lease extension

Why you should commence your Kempsey lease extension today:

Increase your lease and increase your Kempsey property value

With a residential leasehold property in Kempsey, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Residents in Kempsey with a lease nearing 81 years left should seriously consider extending it sooner than later. When the lease term has below 80 years left, under the current Act the freeholder is entitled to calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.

Kempsey property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.

Lenders may not issue a mortgage with a short lease

Nearly all mortgage companies will be unwilling to lend on a lease with less than 70 years left to run - although this varies from lender to lender. A buyer will no doubt encounter difficulties in obtaining a mortgage and this could result in your Kempsey property becoming difficult to sell or to obtain finance on.

What makes us experts in Kempsey lease extensions?

Regardless of whether you are a tenant or a landlord in Kempsey,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kempsey valuers.

Kempsey Lease Extension Case Summaries:

Harry, Kempsey, Worcestershire,

Harry was the the leasehold proprietor of a high value flat in Kempsey being marketed with a lease of just over sixty years outstanding. Harry informally approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Harry to exercise his statutory right. Harry procured expert advice and secured satisfactory deal informally and sell the property.

Kempsey case:

Last Spring we were approach by Mr Harvey Díaz , who took over the lease of a one bedroom apartment in Kempsey in August 2001. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Identical flats in Kempsey with an extended lease were valued about £201,200. The average ground rent payable was £55 invoiced monthly. The lease expiry date was on 8 June 2082. Taking into account 56 years unexpired we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including legals.

Kempsey case:

Dr F Murphy acquired a one bedroom apartment in Kempsey in July 1997. The dilemma was if we could estimate the price would be to extend the lease by an additional years. Comparable flats in Kempsey with an extended lease were valued around £300,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease terminated in 2102. Taking into account 76 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.