With a residential leasehold premises in Kelvedon, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Anyone in Kelvedon with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once a lease has under 80 years remaining, under the relevant Act the freeholder is entitled to calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Kelvedon with in excess of 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 buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Kelvedon 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 conveyancer we work with provide it.
14 months ago Sebastian, came critically close to the 80-year threshold with the lease on his two bedroom apartment in Kelvedon. Having purchased his home two decades ago, the lease term was of no relevance. Luckily, he became aware that he would imminently be paying way over the odds for Extending the lease. Sebastian was able to extend his lease just under the wire in July. Sebastian and the freeholder ultimately settled on an amount of £6,000 . If he had missed the deadline, the price would have increased by at least £875.
In 2014 we were phoned by Mr and Mrs. O Hernández who, having was assigned a lease of a basement flat in Kelvedon in August 2004. The question was if we could approximate the price could be to extend the lease by 90 years. Comparative properties in Kelvedon with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 collected every twelve months. The lease came to a finish in 2098. Having 73 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.
Last Summer we were approach by Dr P Brooks , who bought a recently refurbished flat in Kelvedon in January 2008. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparative flats in Kelvedon with 100 year plus lease were valued around £264,000. The mid-range ground rent payable was £60 billed yearly. The lease came to a finish on 9 June 2078. Considering the 53 years left we estimated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 plus fees.