The only way is down when it comes to Kineton lease terms. Kineton leaseholds that have a lease term fewer than eighty years will de-escalate in market price at a rapid rate, and the cost to extend your lease will rise.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service will provide you enhanced control over the value of your Kineton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Oscar, came seriously close to the eighty-year mark with the lease on his basement apartment in Kineton. In buying his home two decades ago, the lease term was of minimal importance. Fortunately, he became aware that he would imminently be paying an escalated premium for Extending the lease. Oscar arranged for a lease extension just ahead of time in August. Oscar and the freeholder via the managing agents subsequently agreed on a premium of £5,000 . If he had missed the deadline, the sum would have gone up by a minimum £1,050.
Mr G Norbert bought a basement apartment in Kineton in October 2004. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Identical flats in Kineton with an extended lease were valued about £280,000. The average ground rent payable was £55 billed monthly. The lease terminated on 11 February 2104. Considering the 78 years remaining we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
Mrs M Petit purchased a recently refurbished flat in Kineton in June 2008. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative premises in Kineton with 100 year plus lease were in the region of £186,000. The average amount of ground rent was £65 invoiced monthly. The lease lapsed on 4 May 2084. Taking into account 58 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 not including costs.