Kempshott leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Kempshott will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not be entitled. There are also strict deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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 |
| 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 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.
Gabriel was the the leasehold owner of a conversion flat in Kempshott on the market with a lease of fraction over sixty years remaining. Gabriel on an informal basis approached 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 on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2014 we were contacted by Mr Lucas Cooper who, having completed a ground floor apartment in Kempshott in May 2006. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Identical homes in Kempshott with 100 year plus lease were valued around £208,200. The average amount of ground rent was £65 invoiced per annum. The lease finished on 12 February 2086. Having 61 years unexpired we estimated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including professional charges.
In 2011 we were e-mailed by Mr and Mrs. P Michel who, having owned a first floor flat in Kempshott in January 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Kempshott with a long lease were in the region of £260,000. The mid-range amount of ground rent was £50 collected annually. The lease expired on 23 January 2097. Considering the 72 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.