It’s an underpublicised truth that a Ketton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Ketton property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term dips under eighty 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. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Ketton will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Ketton with in excess of one hundred 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Ketton can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 dealing with Ketton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted negotiations with the landlord of her one bedroom apartment in Ketton, Charlotte commenced the lease extension process just as the lease was approaching the critical 80-year threshold. The transaction was concluded in May 2010. The freeholder’s charges were restricted to under 450 pounds.
Dr G Turner moved into a garden apartment in Ketton in January 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparative homes in Ketton with a long lease were worth £210,000. The average amount of ground rent was £50 collected monthly. The lease finished on 20 February 2106. Given that there were 80 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.
In 2013 we were e-mailed by Dr Melissa López who, having acquired a studio flat in Ketton in June 2004. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Identical properties in Ketton with a long lease were in the region of £275,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease concluded in 2095. Having 69 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of fees.