The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Kempston may extend the lease for an additional 90 years in accordance with statute. Do think carefully before delaying your Kempston lease extension. Shelving that expense today simply increases the price you will ultimately have to pay to extend the lease.
Leasehold residencies in Kempston with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Kempston,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kempston valuers.
Last October Gabriel, started to get near to the 80-year threshold with the lease on his first floor flat in Kempston. In buying his flat 18 years previously, the lease term was of no significance. As luck would have it, he recognised he would soon be paying an inflated amount for Extending the lease. Gabriel was able to extend his lease just ahead of time last April. Gabriel and the freeholder subsequently settled on an amount of £5,500 . If the lease had fallen below 80 years, the price would have escalated by a minimum £1,150.
In 2011 we were e-mailed by Mr and Mrs. E Vincent who, having bought a first floor apartment in Kempston in June 2011. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar properties in Kempston with 100 year plus lease were in the region of £300,000. The mid-range ground rent payable was £50 collected every twelve months. The lease termination date was in 2101. Given that there were 76 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
Ms A Jones owned a recently refurbished apartment in Kempston in March 1995. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparative residencies in Kempston with 100 year plus lease were worth £257,800. The average ground rent payable was £65 billed quarterly. The lease expiry date was in 2090. Considering the 65 years left we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including fees.