The re-sale value of a leasehold property in Kettering is impacted by how long the lease has remaining. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised well before the 80 year mark. Current legislation entitles Kettering qualifying lessees to obtain a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Skipton Building Society | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers that we work with handle Kettering 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 conveyancing solicitor we work with provide it.
After unsuccessful correspondence with the freeholder of her basement apartment in Kettering, Melissa initiated the lease extension process as the eighty year deadline was swiftly nearing. The transaction completed in November 2008. The freeholder’s fees were kept to an absolute minimum.
Last year we were e-mailed by Mr Arthur Girard , who moved into a garden apartment in Kettering in January 1999. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Identical homes in Kettering with an extended lease were worth £243,000. The average amount of ground rent was £65 billed yearly. The lease finished on 10 September 2089. Considering the 63 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus expenses.
In 2011 we were called by Dr Kyle Lefebvre who, having bought a one bedroom apartment in Kettering in January 2002. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar properties in Kettering with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease expired on 27 November 2078. Considering the 52 years unexpired we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including fees.