The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Kempston have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Kempston lease extension. Postponing the costs today simply increases the price you will ultimately be required to pay to extend the lease.
Leasehold premises in Kempston with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Lease extensions in Kempston can be a difficult process. We recommend you procure professional help from a conveyancer and valuer 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.
Adam was the the leasehold proprietor of a conversion apartment in Kempston being sold with a lease of a few days over sixty years left. Adam informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Adam to exercise his statutory right. Adam procured expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
In 2011 we were contacted by Mr and Mrs. E Díaz who, having took over the lease of a first floor apartment in Kempston in April 1999. The question was if we could estimate the price would be to extend the lease by ninety years. Similar homes in Kempston with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease concluded on 3 November 2104. Taking into account 79 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
Dr Hunter Evans moved into a garden apartment in Kempston in June 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical homes in Kempston with a long lease were worth £275,000. The average amount of ground rent was £65 billed monthly. The lease expiry date was in 2093. Considering the 68 years remaining we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.