The only way is down when it comes to Kenilworth lease terms. Kenilworth leaseholds that have a remaining term less than than 80 years will reduce in value at a rapid rate, and the cost to extend your lease will rise.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
The lawyers that we work with undertake Kenilworth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Nathan was the the leasehold proprietor of a studio flat in Kenilworth on the market with a lease of a few days over sixty years left. Nathan on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last Autumn we were e-mailed by Mr U Khan , who purchased a garden flat in Kenilworth in June 2005. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative properties in Kenilworth with 100 year plus lease were valued around £290,000. The average amount of ground rent was £60 billed every twelve months. The lease terminated on 6 February 2106. Having 80 years remaining we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.
In 2010 we were contacted by Mr M Petit who, having completed a studio flat in Kenilworth in May 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparable homes in Kenilworth with 100 year plus lease were valued about £200,800. The mid-range ground rent payable was £65 billed quarterly. The lease came to a finish in 2086. Having 60 years left we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 plus professional charges.