On the balance of probabilities if you own a flat in Kesgrave you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Kesgrave 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.
Trailing unsuccessful discussions with the landlord of her basement apartment in Kesgrave, Natalie initiated the lease extension process just as her lease was coming close to the all-important 80-year threshold. The lease extension completed in October 2008. The freeholder’s fees were negotiated to below four hundred GBP.
Last Spring we were phoned by Mr and Mrs. G Ricardo , who purchased a ground floor flat in Kesgrave in September 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative homes in Kesgrave with 100 year plus lease were worth £216,000. The average ground rent payable was £60 invoiced yearly. The lease ended on 1 March 2083. Given that there were 58 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.
In 2009 we were called by Mr and Mrs. N Davis who, having purchased a purpose-built apartment in Kesgrave in June 2005. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Similar properties in Kesgrave with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected annually. The lease expiry date was on 9 September 2103. Given that there were 78 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.