Kennington 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 gets more expensive. Legislation has been in place for sometime now which entitles qualifying Kennington residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Kennington you should see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Kennington leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay
Leasehold properties in Kennington with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Kennington,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kennington valuers.
Subsequent to unsuccessful correspondence with the landlord of her first floor flat in Kennington, Ella commenced the lease extension process just as the lease was approaching the crucial eighty-year threshold. The lease extension was finalised in March 2007. The landlord’s charges were restricted to about 500 GBP.
Last Summer we were contacted by Dr Rachael Hall , who acquired a garden apartment in Kennington in October 2003. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Comparable properties in Kennington with an extended lease were worth £233,200. The average ground rent payable was £60 billed monthly. The lease finished in 2086. Having 61 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of fees.
An example of a Lease Extension decision for a Kennington flat is Ground Floor Flat 39 Bronsart Road in May 2010. Following a vesting order by West London County Court the Leasehold Valuation Tribunal concluded that the price to be paid for the extended lease of the premises was Thirteen Thousand Two hundred pounds (£13,200) in accordance with the valuation. The extended lease was granted for a term of 90 years from the expiry date of the Lease and at a peppercorn ground rent from the date of the vesting order. This case was in relation to 1 flat. The unexpired lease term was 74.77 years.