The value of Ketton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the remaining term is below than 80 years
Leasehold premises in Ketton with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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 also be not less than 75 years 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. |
Retaining our service will provide you increased control over the value of your Ketton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Alfie, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in Ketton. Having bought his flat two decades ago, the length of the lease was of little concern. by good luck, he realised he needed to take action soon on Extending the lease. Alfie extended the lease at the eleventh hour last July. Alfie and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If he had missed the deadline, the figure would have gone up by at least £950.
Mrs V Mason completed a studio flat in Ketton in September 1999. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Comparable properties in Ketton with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease lapsed on 3 January 2089. Considering the 64 years outstanding we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of fees.
Mr F Brown moved into a purpose-built flat in Ketton in May 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparative premises in Ketton with 100 year plus lease were worth £184,000. The mid-range ground rent payable was £55 billed every twelve months. The lease elapsed in 2078. Taking into account 53 years remaining we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.