For those whose Kempshott flat is held on a long lease, the message is clear – if you do nothing, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold premises in Kempshott with more than one hundred years remaining 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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 also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
The conveyancers that we work with undertake 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.
Jasper was the the leasehold owner of a high value flat in Kempshott on the market with a lease of just over 61 years outstanding. Jasper on an informal basis contacted his landlord being 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 subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Jasper to invoke his statutory right. Jasper procured expert advice and secured an acceptable resolution informally and readily saleable.
Mr A Cox completed a first floor flat in Kempshott in April 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in Kempshott with a long lease were worth £225,400. The average amount of ground rent was £45 billed annually. The lease elapsed on 12 February 2090. Taking into account 64 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 not including costs.
Last Summer we were phoned by Mrs M Khan , who completed a first floor flat in Kempshott in September 1999. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar premises in Kempshott with 100 year plus lease were worth £270,000. The average ground rent payable was £55 billed yearly. The lease came to a finish on 23 June 2101. Considering the 75 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.