Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Kempshott. Inevitably, the length of lease left shortens as time goes by. This is often overlooked and only raises itself as an issue when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Eligible leaseholders in Kempshott have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give due attention before putting off your Kempshott lease extension. Holding off the cost now simply increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Kempshott with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers 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 conveyancing solicitor we work with provide it.
Ali owned a 2 bedroom flat in Kempshott being sold with a lease of a few days over 61 years unexpired. Ali informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ali to exercise his statutory right. Ali procured expert legal guidance and secured satisfactory resolution informally and sell the flat.
Mr and Mrs. U Martinez took over the lease of a garden apartment in Kempshott in May 2009. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical flats in Kempshott with an extended lease were worth £176,200. The mid-range ground rent payable was £65 billed monthly. The lease expiry date was in 2082. Having 56 years unexpired we approximated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 plus expenses.
In 2013 we were phoned by Dr Amber Khan who, having was assigned a lease of a one bedroom flat in Kempshott in October 2007. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparable residencies in Kempshott with a long lease were valued about £242,600. The average ground rent payable was £45 invoiced quarterly. The lease lapsed in 2093. Having 67 years outstanding we calculated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including legals.