Why you should commence your Kineton lease extension

Why you should start your Kineton lease extension today:

A Kineton lease depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Kineton. Inevitably, the term of lease left reduces over time. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Kineton have the right to extend the lease for an additional ninety years in accordance with legislation. You should give due attention before delaying your Kineton lease extension. Holding off the cost now simply increases the price you will eventually have to pay to extend your lease

Kineton property with a lease extension is almost the same value as a freehold

Leasehold residencies in Kineton with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies will not grant a mortgage on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past lenders would grant a mortgage on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Kineton lease extensions?

Regardless of whether you are a tenant or a freeholder in Kineton,the lease extension experts 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.

Kineton Lease Extension Case Summaries:

Ibrahim, Kineton, Warwickshire,

Ibrahim was the the leasehold proprietor of a conversion apartment in Kineton being sold with a lease of a few days over 59 years remaining. Ibrahim informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.

Kineton case:

Last Autumn we were e-mailed by Mr and Mrs. T Thompson , who bought a one bedroom flat in Kineton in August 1999. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Comparable premises in Kineton with an extended lease were valued around £265,000. The average amount of ground rent was £50 billed quarterly. The lease ended in 2099. Given that there were 73 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.

Kineton case:

Ms Isabella Patel took over the lease of a purpose-built apartment in Kineton in February 1996. We are asked if we could approximate the price would be for a 90 year lease extension. Identical premises in Kineton with a long lease were worth £264,000. The average amount of ground rent was £60 collected yearly. The lease ran out in 2079. Given that there were 53 years left we approximated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 not including fees.