As the the remaining lease term of a Kineton residential lease lessens so does its value and therefore the value of your property. Where the residual term has, over one hundred years to run then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Kineton will meet the qualifying criteria; nevertheless a conveyancer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you increased control over the value of your Kineton leasehold, as your property will be more valuable and marketable in terms of 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.
In the wake of eight months of protracted correspondence with the freeholder of her one bedroom flat in Kineton, Alisha started the lease extension process as the 80 year mark was swiftly approaching. The lease extension was concluded in July 2011. The landlord’s fees were restricted to about 550 GBP.
In 2009 we were phoned by Mr C Evans who, having bought a ground floor flat in Kineton in June 2008. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar residencies in Kineton with 100 year plus lease were valued about £193,400. The average ground rent payable was £65 collected yearly. The lease expiry date was on 3 May 2085. Given that there were 59 years left we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including legals.
In 2013 we were e-mailed by Mr N Leroy who, having took over the lease of a basement apartment in Kineton in May 2006. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative residencies in Kineton with a long lease were in the region of £255,000. The average amount of ground rent was £50 invoiced per annum. The lease came to a finish in 2096. Having 70 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.