Kesgrave leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Kesgrave will usually qualify for a lease extension; however a solicitor will check if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Kesgrave with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Kesgrave can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 in-depth market knowledge procuring Kesgrave lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Joshua, came seriously near to the 80-year threshold with the lease on his basement apartment in Kesgrave. In buying his flat 18 years ago, the unexpired term was of minimal interest. As luck would have it, he realised he would imminently be paying way over the odds for Extending the lease. Joshua arranged for a lease extension at the eleventh hour in January. Joshua and the landlord ultimately settled on sum of £5,000 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £1,000.
Last Christmas we were approach by Dr Cameron García , who purchased a ground floor flat in Kesgrave in April 1997. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparable properties in Kesgrave with a long lease were worth £200,000. The average amount of ground rent was £50 billed yearly. The lease elapsed on 25 May 2102. Taking into account 77 years unexpired we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
In 2014 we were called by Mr James Moore who, having moved into a one bedroom flat in Kesgrave in August 2007. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparative homes in Kesgrave with a long lease were in the region of £260,200. The mid-range amount of ground rent was £65 billed quarterly. The lease expired in 2091. Considering the 66 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 plus expenses.