With a long leasehold property in Kempston, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension 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 less than eighty years remaining. Leasehold owners in Kempston with a lease drawing near to 81 years remaining should seriously consider extending it sooner rather than later. Once the lease term has below eighty years left, under the current Act the freeholder can calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Kempston with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Kempston can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Following unsuccessful discussions with the freeholder of her purpose-built flat in Kempston, Victoria commenced the lease extension process as the 80 year mark was fast nearing. The transaction was finalised in November 2011. The landlord’s charges were negotiated to about 500 pounds.
Mrs Jessica Parker acquired a one bedroom flat in Kempston in January 2003. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable premises in Kempston with 100 year plus lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease lapsed in 2101. Considering the 75 years remaining we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.
Last Christmas we were approach by Mr and Mrs. H Mercier , who took over the lease of a newly refurbished flat in Kempston in May 2010. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable flats in Kempston with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 invoiced monthly. The lease finished in 2090. Given that there were 64 years remaining we calculated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 plus expenses.