Kennington leases on residential deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Kennington will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Halifax | |
| Leeds Building Society | |
| TSB | |
| Royal Bank of Scotland |
The lawyers that we work with handle Kennington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of eight months of unsuccessful negotiations with the landlord of her two bedroom flat in Kennington, Alicia commenced the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The lease extension completed in August 2013. The landlord’s costs were negotiated to below 500 pounds.
Last Autumn we were phoned by Mr and Mrs. I Cook , who completed a garden flat in Kennington in April 1998. The dilemma was if we could estimate the premium would be to prolong the lease by ninety years. Comparative flats in Kennington with 100 year plus lease were worth £216,000. The average amount of ground rent was £60 invoiced every twelve months. The lease expiry date was in 2084. Given that there were 58 years outstanding we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus fees.
An example of a Lease Extension case for a Kennington residence 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 term as at the valuation date was 74.77 years.