For those whose Kennington property is held on a long lease, the message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension.
Leasehold residencies in Kennington with over 100 years unexpired on the lease are sometimes 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 reversionary interest 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Kennington leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago George, started to get close to the 80-year threshold with the lease on his basement apartment in Kennington. In buying his property two decades ago, the lease term was of no bearing. by good luck, he became aware that he needed to take action soon on a lease extension. George arranged for a lease extension just under the wire in March. George and the freeholder in the end agreed on an amount of £6,000 . If the lease had slipped below eighty years, the figure would have escalated by at least £925.
In 2010 we were approached by Dr F Jones who, having purchased a one bedroom flat in Kennington in June 1995. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative premises in Kennington with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 collected yearly. The lease lapsed on 20 July 2083. Considering the 57 years left we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including fees.
An example of a Lease Extension case for a Kennington premises 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 residue of the current lease was 74.77 years.