The nearer a domestic lease in Kempshott gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. The majority of flat owners in Kempshott will meet the qualifying criteria; that being said a conveyancing solicitor should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Kempshott,the lease extension lawyers that we work with will always be willing 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.
Off the back of unsuccessful negotiations with the freeholder of her studio apartment in Kempshott, Danielle commenced the lease extension process just as the lease was coming close to the critical 80-year deadline. The transaction was concluded in March 2012. The freeholder’s fees were negotiated to under 600 pounds.
In 2011 we were e-mailed by Mr Sebastian André who, having completed a studio flat in Kempshott in March 2000. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Kempshott with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 billed yearly. The lease expiry date was on 27 October 2098. Having 73 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
In 2010 we were phoned by Mr and Mrs. S Cook who, having took over the lease of a newly refurbished apartment in Kempshott in June 1998. The question was if we could estimate the price would likely be for a ninety year lease extension. Similar premises in Kempshott with 100 year plus lease were valued about £264,000. The mid-range amount of ground rent was £60 collected quarterly. The lease ended in 2078. Having 53 years left we approximated the premium to the landlord for the lease extension to be between £37,100 and £42,800 plus costs.