It’s a harsh certainty that a Kinver residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Kinver property prices.Where your lease has approximately 90 years left, you need to start considering 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 below eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Kinver will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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; |
| Chelsea Building Society | 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. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
Using our service gives you enhanced control over the value of your Kinver leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the landlord of her basement apartment in Kinver, Amber commenced the lease extension process just as her lease was approaching the crucial eighty-year mark. The transaction was concluded in July 2010. The freeholder’s charges were negotiated to about 450 GBP.
Mrs Freya Garcia bought a studio apartment in Kinver in May 2004. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Identical premises in Kinver with a long lease were valued about £250,000. The mid-range ground rent payable was £50 collected every twelve months. The lease concluded on 9 April 2096. Taking into account 70 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2013 we were contacted by Dr Leon Wright who, having completed a basement flat in Kinver in September 2004. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical flats in Kinver with a long lease were valued about £246,800. The average ground rent payable was £60 invoiced per annum. The lease concluded in 2076. Considering the 50 years unexpired we approximated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 plus professional charges.