For those whose Kempshott home is held on a long lease, the message is clear – if no remedial action is taken, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.
Leasehold premises in Kempshott with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Skipton Building Society |
The conveyancers that we work with handle Kempshott 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 lawyer we work with provide it.
Tyler was the the leasehold proprietor of a studio apartment in Kempshott being marketed with a lease of a few days over fifty eight years unexpired. Tyler on an informal basis contacted his landlord a well known local-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 new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Tyler to exercise his statutory right. Tyler obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were contacted by Ms Harriet Young who, having acquired a one bedroom apartment in Kempshott in July 1999. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Identical properties in Kempshott with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease came to a finish on 1 January 2096. Considering the 70 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
Mr Jack Mitchell bought a studio flat in Kempshott in September 1997. The question was if we could approximate the price would be to extend the lease by an additional years. Similar properties in Kempshott with an extended lease were in the region of £246,800. The average amount of ground rent was £60 invoiced annually. The lease came to a finish on 17 July 2076. Considering the 50 years remaining we approximated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 plus expenses.