The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Kempston may extend the lease for a further 90 years under statute. Please think carefully before delaying your Kempston lease extension. Postponing the costs now simply increases the premium you will ultimately have to pay to extend the lease.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Lease extensions in Kempston can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Kempston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted negotiations with the freeholder of her one bedroom flat in Kempston, Emily commenced the lease extension process as the 80 year mark was quickly coming. The legal work was concluded in November 2006. The landlord’s charges were restricted to a tad over 550 pounds.
In 2012 we were phoned by Mrs Kelsey García who, having acquired a one bedroom apartment in Kempston in January 2010. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Identical residencies in Kempston with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 collected per annum. The lease terminated on 1 March 2093. Having 68 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.
In 2012 we were e-mailed by Dr Austin François who, having moved into a newly refurbished apartment in Kempston in June 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable flats in Kempston with 100 year plus lease were worth £208,600. The average ground rent payable was £60 invoiced yearly. The lease terminated on 20 March 2082. Considering the 57 years left we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of costs.