The market value of a leasehold property in Kington is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that formalities can be addressed ahead of the eighty year cut off point. Leasehold Reform legislation entitles Kington qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Kington with in excess of 100 years left on the lease are often 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 buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Lease extensions in Kington can be a difficult process. We recommend you procure professional help from a conveyancer 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 procuring Kington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy correspondence with the freeholder of her first floor apartment in Kington, Aimee commenced the lease extension process just as the lease was coming close to the critical 80-year deadline. The transaction was concluded in February 2015. The freeholder’s costs were restricted to slightly above 500 pounds.
In 2013 we were approached by Mr and Mrs. I Lewis who, having was assigned a lease of a studio apartment in Kington in April 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Comparable properties in Kington with a long lease were valued about £184,000. The mid-range amount of ground rent was £55 invoiced annually. The lease ended in 2079. Considering the 53 years remaining we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including expenses.
In 2010 we were contacted by Mr and Mrs. G Turner who, having purchased a purpose-built apartment in Kington in October 2001. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparable premises in Kington with a long lease were worth £290,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease expiry date was on 17 August 2099. Having 73 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.