Kettering leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Kettering will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the freeholder of her leasehold flat in Kettering, Chantelle started the lease extension process as the eighty year threshold was swiftly advancing. The lease extension was finalised in May 2012. The landlord’s charges were kept to an absolute minimum.
Last Summer we were phoned by Mrs Sophie Gómez , who was assigned a lease of a basement apartment in Kettering in April 1999. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative premises in Kettering with a long lease were worth £200,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease elapsed on 8 February 2103. Considering the 77 years left we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.
In 2014 we were called by Dr O Smith who, having acquired a basement flat in Kettering in June 2011. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable properties in Kettering with an extended lease were valued around £260,200. The average ground rent payable was £65 billed monthly. The lease expired in 2092. Taking into account 66 years left we calculated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 plus expenses.