With a residential leasehold property in Kettering, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than eighty years remaining. Anyone in Kettering with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. Once a lease has less than eighty years outstanding, under the relevant Act the landlord can calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Kettering with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Engaging our service gives you increased control over the value of your Kettering leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year George, came perilously close to the 80-year mark with the lease on his purpose- built flat in Kettering. In buying his property twenty years previously, the lease term was of no bearing. Fortunately, he noticed he needed to take steps soon on Extending the lease. George extended the lease just in the nick of time in June. George and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If he not met the deadline, the price would have gone up by a minimum £1,150.
Mr P Roux was assigned a lease of a garden apartment in Kettering in November 1998. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Identical residencies in Kettering with an extended lease were in the region of £295,000. The mid-range ground rent payable was £50 collected yearly. The lease ran out in 2101. Taking into account 75 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Ms L Scott purchased a studio flat in Kettering in February 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical flats in Kettering with a long lease were worth £250,400. The mid-range ground rent payable was £65 billed monthly. The lease expired in 2090. Considering the 64 years left we approximated the premium to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of legals.