When it comes to domestic leasehold property in Kingswood, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years left. Leasehold owners in Kingswood with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has under 80 years remaining, under the relevant legislation the landlord can calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Kingswood with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| Santander |
Lease extensions in Kingswood can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 Kingswood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy negotiations with the freeholder of her ground floor apartment in Kingswood, Madeleine started the lease extension process just as the lease was nearing the all-important 80-year mark. The legal work was concluded in August 2007. The landlord’s costs were negotiated to slightly above four hundred pounds.
Last Christmas we were approach by Dr N Campbell , who took over the lease of a first floor flat in Kingswood in April 2005. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparable flats in Kingswood with an extended lease were in the region of £233,200. The average ground rent payable was £60 billed every twelve months. The lease ran out in 2087. Given that there were 61 years outstanding we calculated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 plus fees.
In 2013 we were contacted by Mr L Bonnet who, having acquired a one bedroom apartment in Kingswood in May 2008. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable properties in Kingswood with a long lease were worth £166,800. The mid-range ground rent payable was £50 collected yearly. The lease terminated on 24 August 2076. Considering the 50 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 plus expenses.