As the the remaining lease term of a Kesgrave residential lease decreases so does its value and therefore the value of your property. Where the residual term has, over one hundred years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Kesgrave will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Kesgrave,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kesgrave valuers.
Jamie owned a 2 bedroom flat in Kesgrave on the market with a lease of a few days over fifty eight years remaining. Jamie on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Jamie to exercise his statutory right. Jamie obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2010 we were contacted by Mr and Mrs. D Baker who, having took over the lease of a ground floor apartment in Kesgrave in January 1998. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparative homes in Kesgrave with an extended lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ran out in 2101. Given that there were 75 years left we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.
In 2013 we were approached by Mr and Mrs. K Gómez who, having took over the lease of a first floor flat in Kesgrave in May 1997. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative residencies in Kesgrave with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease concluded on 3 September 2090. Having 64 years remaining we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including legals.