The re-sale value of a leasehold property in Kenley depends on how long the lease has remaining. If it is near to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded in advance of the eighty year threshold. Leasehold Reform legislation enables Kenley qualifying lessees to an additional term of ninety years over and above the unexpired term, at a notional rent (zero ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Kenley with more than 100 years unexpired on the lease are sometimes referred to as ‘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 merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Using our service gives you enhanced control over the value of your Kenley leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the landlord of her one bedroom apartment in Kenley, Shannon initiated the lease extension process as the 80 year mark was fast nearing. The transaction was concluded in February 2011. The freeholder’s costs were kept to an absolute minimum.
Last Christmas we were called by Mr Cameron Lee , who acquired a ground floor apartment in Kenley in August 2011. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical flats in Kenley with an extended lease were valued about £225,400. The mid-range ground rent payable was £45 billed yearly. The lease elapsed in 2089. Considering the 64 years outstanding we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Kenley premises is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case was in relation to 6 flats. The unexpired residue of the current lease was 78.32 years.