With a long leasehold property in Kinver, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Leasehold owners in Kinver with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once a lease has fewer than 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Kinver with over 100 years remaining 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Halifax | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
The lawyers that we work with procure Kinver 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 lawyer we work with provide it.
Leon owned a high value apartment in Kinver on the market with a lease of fraction over 59 years remaining. Leon informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Leon to exercise his statutory right. Leon procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Mr Harvey Alexander bought a one bedroom apartment in Kinver in July 1997. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparable premises in Kinver with an extended lease were valued around £275,000. The average ground rent payable was £55 billed per annum. The lease finished on 9 September 2103. Given that there were 77 years as a residual term we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.
Last Autumn we were e-mailed by Mr and Mrs. I Stewart , who acquired a first floor flat in Kinver in April 2008. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable properties in Kinver with an extended lease were valued around £183,600. The mid-range ground rent payable was £65 invoiced quarterly. The lease end date was on 4 June 2083. Given that there were 57 years remaining we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus costs.