The market value of a leasehold property in Kenilworth depends on how long the lease has left to run. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded prior to the 80 year cut off point. Current legislation entitles Kenilworth qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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 lawyer we work with provide it.
Dexter was the the leasehold owner of a high value flat in Kenilworth on the market with a lease of a little over 61 years outstanding. Dexter informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Dexter to exercise his statutory right. Dexter procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2011 we were called by Dr George David who, having was assigned a lease of a garden flat in Kenilworth in July 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Identical premises in Kenilworth with a long lease were in the region of £255,000. The average amount of ground rent was £50 billed per annum. The lease finished in 2095. Given that there were 70 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
In 2012 we were e-mailed by Mr and Mrs. V Lefèvre who, having took over the lease of a first floor flat in Kenilworth in September 2003. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparative properties in Kenilworth with an extended lease were in the region of £246,800. The mid-range amount of ground rent was £60 invoiced annually. The lease concluded on 16 February 2075. Considering the 50 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including costs.