The closer a residential lease in Kempston nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner than later. Many flat owners in Kempston will qualify for this right; however a conveyancer should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Kempston leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Felix, came perilously close to the eighty-year threshold with the lease on his one bedroom flat in Kempston. Having purchased his property 18 years ago, the lease term was of minimal importance. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Felix was able to extend his lease at the eleventh hour last May. Felix and the freeholder via the managing agents ultimately settled on the final figure of £5,000 . If he had missed the deadline, the sum would have escalated by a minimum £925.
Dr A Simon owned a studio apartment in Kempston in June 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Kempston with an extended lease were worth £265,200. The average ground rent payable was £65 collected yearly. The lease lapsed on 8 September 2091. Considering the 66 years as a residual term we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of fees.
In 2010 we were called by Mr and Mrs. I Ricardo who, having moved into a garden apartment in Kempston in August 2011. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Comparative residencies in Kempston with an extended lease were valued around £198,800. The average ground rent payable was £55 invoiced annually. The lease ran out in 2080. Given that there were 55 years left we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus legals.