With a domestic leasehold property in Kempshott, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Residents in Kempshott with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once a lease has below eighty years outstanding, under the relevant legislation the freeholder can calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Kempshott with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Kempshott,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 Kempshott valuers.
In 2014 Aaron, started to get close to the eighty-year mark with the lease on his studio apartment in Kempshott. Having bought his property twenty years ago, the length of the lease was of little concern. by good luck, he realised he needed to take action soon on Extending the lease. Aaron arranged for a lease extension just under the wire in June. Aaron and the freeholder via the management company ultimately settled on the final figure of £5,500 . If he had missed the deadline, the sum would have increased by a minimum £1,150.
Last year we were contacted by Mrs Isabella Rose , who was assigned a lease of a ground floor apartment in Kempshott in April 2006. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Identical premises in Kempshott with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected yearly. The lease came to a finish in 2089. Having 63 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 not including expenses.
Last Spring we were contacted by Mr C Pérez , who owned a one bedroom apartment in Kempshott in April 2011. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical premises in Kempshott with 100 year plus lease were valued about £265,000. The average amount of ground rent was £50 collected quarterly. The lease finished in 2100. Having 74 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.