It’s an underpublicised certainty that a Kempston residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Kempston property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be due. Most flat owners in Kempston will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in Kempston with over one hundred years outstanding on the lease are often 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 freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Skipton Building Society | |
| Yorkshire Building Society |
Lease extensions in Kempston can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Kempston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Aaron, came seriously close to the eighty-year threshold with the lease on his purpose- built apartment in Kempston. Having purchased his flat two decades ago, the lease term was of no concern. Thankfully, he noticed he needed to take steps soon on a lease extension. Aaron was able to extend his lease just in the nick of time last March. Aaron and the landlord subsequently agreed on the final figure of £6,000 . If he failed to meet the deadline, the price would have increased by at least £1,100.
In 2013 we were approached by Mr Alfie Norbert who, having moved into a purpose-built flat in Kempston in October 1997. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Kempston with 100 year plus lease were valued around £275,000. The average ground rent payable was £65 billed every twelve months. The lease finished on 16 August 2094. Given that there were 68 years left we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.
Mr Owen Laurent acquired a garden flat in Kempston in November 2006. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Comparative properties in Kempston with an extended lease were in the region of £213,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease ended on 11 April 2083. Considering the 57 years unexpired we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of expenses.