The market value of Kelvedon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is below than eighty years
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Kelvedon can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 in-depth market knowledge procuring Kelvedon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Isaac was the the leasehold owner of a studio flat in Kelvedon being sold with a lease of fraction over 72 years unexpired. Isaac on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2009 we were e-mailed by Mr and Mrs. E James who, having purchased a garden apartment in Kelvedon in November 2004. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Kelvedon with an extended lease were valued about £203,200. The mid-range ground rent payable was £65 collected yearly. The lease termination date was in 2086. Considering the 61 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of legals.
Last Autumn we were e-mailed by Mr and Mrs. D Brown , who acquired a first floor flat in Kelvedon in September 2010. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical premises in Kelvedon with a long lease were in the region of £260,000. The average amount of ground rent was £50 collected annually. The lease finished on 10 October 2097. Considering the 72 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.