Unfortunately that a Kings Lynn residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Kings Lynn property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be due. The majority of flat owners in Kings Lynn will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases 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 conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Kings Lynn can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Kings Lynn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the freeholder of her garden flat in Kings Lynn, Isabella commenced the lease extension process just as the lease was coming close to the all-important 80-year deadline. The legal work was concluded in July 2008. The freeholder’s fees were negotiated to less than 450 pounds.
In 2009 we were approached by Mrs U Díaz who, having purchased a one bedroom flat in Kings Lynn in June 2001. We are asked if we could estimate the premium could be to extend the lease by an additional years. Comparative premises in Kings Lynn with 100 year plus lease were worth £246,800. The average amount of ground rent was £60 collected yearly. The lease lapsed on 22 November 2076. Having 50 years unexpired we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of fees.
Last Autumn we were called by Dr Maisie Torres , who bought a one bedroom apartment in Kings Lynn in October 2004. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Kings Lynn with an extended lease were valued about £203,200. The average amount of ground rent was £65 billed every twelve months. The lease expired on 11 September 2087. Taking into account 61 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus fees.