When it comes to domestic leasehold premises in Kempston, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider 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 increases markedly especially once there are less than 80 years remaining. Anyone in Kempston with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. Once a lease has below eighty years outstanding, under the relevant legislation the landlord can calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Kempston with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Retaining our service will provide you enhanced control over the value of your Kempston leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Jake, started to get near to the 80-year threshold with the lease on his ground floor apartment in Kempston. In buying his flat two decades ago, the lease term was of little bearing. by good luck, he became aware that he would soon be paying an inflated amount for Extending the lease. Jake was able to extend his lease at the eleventh hour in May. Jake and the freeholder subsequently agreed on an amount of £6,000 . If the lease had dipped lower than 80 years, the price would have escalated by at least £875.
In 2012 we were approached by Ms Phoebe Rodríguez who, having moved into a first floor apartment in Kempston in March 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Similar flats in Kempston with an extended lease were valued about £223,400. The average amount of ground rent was £60 invoiced every twelve months. The lease ended on 6 January 2085. Considering the 59 years outstanding we calculated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 not including professional charges.
In 2013 we were e-mailed by Mr and Mrs. U Scott who, having bought a ground floor flat in Kempston in February 2006. The question was if we could estimate the price would likely be to extend the lease by an additional years. Similar premises in Kempston with a long lease were worth £205,000. The average ground rent payable was £50 billed yearly. The lease elapsed on 13 June 2105. Having 79 years left we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.