Main reasons to commence your Kempston lease extension

Top reasons for lease extension now:

Increase your lease and increase your Kempston property value

When it comes to domestic leasehold property in Kempston, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Anyone in Kempston with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. Once a lease has under 80 years remaining, under the relevant legislation the landlord is entitled to calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.

Lending institutions may decide not to lend with a short lease

Lenders are really restricting their approach as regards to homes in Kempston with short leases. For instance you may find that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so if you needed to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus restricting the number of prospective buyers.

What makes us experts in Kempston lease extensions?

Regardless of whether you are a tenant or a freeholder in Kempston,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kempston valuers.

Kempston Lease Extension Example Cases:

Kirsty, Kempston, Bedfordshire,

Trailing unsuccessful correspondence with the freeholder of her ground floor flat in Kempston, Kirsty started the lease extension process just as the lease was approaching the all-important 80-year deadline. The legal work completed in August 2005. The landlord’s costs were negotiated to less than 550 GBP.

Kempston case:

In 2011 we were approached by Mr and Mrs. B Allen who, having completed a garden flat in Kempston in October 2009. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparable flats in Kempston with 100 year plus lease were valued about £210,000. The average ground rent payable was £50 collected quarterly. The lease termination date was in 2106. Considering the 80 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.

Kempston case:

In 2011 we were contacted by Mr and Mrs. F Simon who, having bought a garden flat in Kempston in November 2004. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Kempston with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease elapsed in 2095. Given that there were 69 years outstanding we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.