It’s a harsh certainty that a Kineton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Kineton property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining falls under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to 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 The majority of leasehold owners in Kineton will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not qualify. 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 properties in Kineton with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Kineton,the lease extension lawyers 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 Kineton valuers.
Zachary owned a studio apartment in Kineton on the market with a lease of just over 59 years remaining. Zachary informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Zachary to exercise his statutory right. Zachary procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last Autumn we were approach by Dr S Murphy , who was assigned a lease of a ground floor apartment in Kineton in October 2005. The question was if we could estimate the price would be to prolong the lease by 90 years. Comparative homes in Kineton with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 invoiced annually. The lease terminated in 2105. Given that there were 80 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.
Last month we were called by Dr Zachary Campbell , who owned a basement apartment in Kineton in March 2003. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Comparable premises in Kineton with an extended lease were valued about £200,800. The mid-range amount of ground rent was £65 billed yearly. The lease end date was in 2085. Considering the 60 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 not including costs.