When it comes to long leasehold premises in Kempston, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than eighty years remaining. Residents in Kempston with a lease approaching 81 years left should seriously think of extending it as soon as possible. Once the lease term has below eighty years left, under the relevant statute the freeholder can calculate and charge a greater amount, based on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Kempston 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.
Last Autumn John, started to get close to the 80-year mark with the lease on his basement flat in Kempston. In buying his property 18 years previously, the length of the lease was of little relevance. by good luck, he noticed he would imminently be paying an inflated amount for a lease extension. John arranged for a lease extension just under the wire last January. John and the freeholder via the managing agents subsequently agreed on an amount of £6,000 . If he had missed the deadline, the price would have increased by at least £900.
Last year we were phoned by Mr F Cook , who purchased a first floor apartment in Kempston in February 2004. The question was if we could approximate the price would be for a ninety year lease extension. Comparable properties in Kempston with an extended lease were in the region of £290,000. The average amount of ground rent was £45 billed yearly. The lease terminated in 2098. Given that there were 73 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
Last June we were e-mailed by Mr and Mrs. M Bonnet , who moved into a newly refurbished flat in Kempston in February 1997. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar residencies in Kempston with a long lease were worth £240,600. The average ground rent payable was £60 billed quarterly. The lease finished in 2087. Having 62 years remaining we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including costs.