Why you should start your Kimberley lease extension

Why you should start your Kimberley lease extension today:

A Kimberley leasehold property depreciates with the years remaining on the lease.

The value of Kimberley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than 80 years

An extended lease has roughly the same value as a freehold

Leasehold premises in Kimberley with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.

Lending institutions will not grant a mortgage with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has meant the unexpired lease term required by banks has increased. Historically banks would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Kimberley lease extensions?

Regardless of whether you are a tenant or a landlord in Kimberley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kimberley valuers.

Kimberley Lease Extension Example Cases:

Alex, Kimberley, Nottinghamshire,

Alex was the the leasehold proprietor of a studio apartment in Kimberley on the market with a lease of a few days over 59 years outstanding. Alex on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Alex to exercise his statutory right. Alex procured expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.

Kimberley case:

In 2014 we were phoned by Dr Owen Lewis who, having completed a basement flat in Kimberley in October 2012. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative flats in Kimberley with a long lease were in the region of £245,000. The mid-range amount of ground rent was £50 billed monthly. The lease expiry date was on 13 June 2094. Having 68 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.

Kimberley case:

Last Summer we were e-mailed by Mr and Mrs. T Simon , who owned a newly refurbished apartment in Kimberley in May 2003. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Kimberley with an extended lease were worth £285,000. The average amount of ground rent was £55 invoiced every twelve months. The lease finished in 2105. Considering the 79 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.