Kenley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Kenley enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Kenley you must investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Kenley leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 Kenley can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 dealing with Kenley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Omar, came seriously close to the 80-year threshold with the lease on his garden apartment in Kenley. In buying his property 19 years ago, the length of the lease was of no relevance. Luckily, he recognised he would soon be paying an inflated amount for Extending the lease. Omar extended the lease just under the wire in July. Omar and the freeholder via the managing agents subsequently settled on a premium of £5,500 . If he not met the deadline, the sum would have become more exhorbitant by at least £850.
Last Christmas we were e-mailed by Mr D Hill , who bought a purpose-built apartment in Kenley in November 2010. The question was if we could approximate the price could be to prolong the lease by an additional years. Similar properties in Kenley with a long lease were valued around £255,000. The mid-range amount of ground rent was £50 billed yearly. The lease expired in 2096. Taking into account 71 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
An example of a Freehold Enfranchisement decision for a Kenley property 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.