The market value of a leasehold property in Kings Lynn depends on how long the lease has remaining. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded ahead of the 80 year threshold. Leasehold Reform legislation entitles Kings Lynn qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Kings Lynn with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Kings Lynn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jasper was the the leasehold proprietor of a conversion apartment in Kings Lynn on the market with a lease of a few days over fifty eight years left. Jasper informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert advice and secured an acceptable deal informally and readily saleable.
Mr L Bertrand purchased a studio apartment in Kings Lynn in October 2011. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable residencies in Kings Lynn with an extended lease were worth £220,400. The mid-range ground rent payable was £45 invoiced annually. The lease expired in 2090. Taking into account 64 years remaining we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 plus professional charges.
Mr Callum Lefèvre bought a studio flat in Kings Lynn in November 1995. The question was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable flats in Kings Lynn with a long lease were in the region of £270,000. The average ground rent payable was £55 collected per annum. The lease elapsed in 2101. Taking into account 75 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.