On the balance of probabilities where you own a flat in Kempshott you actually own a long leasehold interest over your property
Leasehold premises in Kempshott with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Kempshott can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 dealing with Kempshott lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted correspondence with the landlord of her first floor apartment in Kempshott, Kayleigh started the lease extension process as the 80 year threshold was swiftly approaching. The lease extension completed in October 2010. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were called by Dr E Ramírez , who was assigned a lease of a newly refurbished apartment in Kempshott in June 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Similar properties in Kempshott with an extended lease were valued about £166,400. The average amount of ground rent was £60 invoiced yearly. The lease came to a finish on 24 July 2080. Having 54 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus expenses.
Last year we were contacted by Mr and Mrs. C Rose , who owned a first floor apartment in Kempshott in October 2012. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical residencies in Kempshott with a long lease were in the region of £227,800. The mid-range amount of ground rent was £45 invoiced monthly. The lease expired in 2091. Having 65 years remaining we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.