The re-sale value of a leasehold property in Kesgrave is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the lease extension process when a lease still has 82 years to run so that a lease extension can be addressed prior to the eighty year mark. Leasehold Reform legislation enables Kesgrave qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Kesgrave with in excess of 100 years remaining on the lease are often referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Kesgrave can be a difficult process. We recommend you procure professional help from a lawyer 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 a wealth of experience dealing with Kesgrave lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted correspondence with the landlord of her studio apartment in Kesgrave, Yasmin started the lease extension process as the eighty year deadline was quickly nearing. The transaction was finalised in February 2005. The freeholder’s charges were restricted to under 500 pounds.
In 2011 we were called by Mr and Mrs. R David who, having moved into a first floor apartment in Kesgrave in July 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Kesgrave with a long lease were valued about £210,000. The average amount of ground rent was £50 collected yearly. The lease finished in 2106. Having 80 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.
Dr Toby Moore was assigned a lease of a first floor flat in Kesgrave in February 2008. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Identical homes in Kesgrave with an extended lease were valued about £275,000. The average ground rent payable was £45 collected quarterly. The lease ended in 2095. Considering the 69 years left we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.