When it comes to domestic leasehold premises in Kennington, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are fewer than 80 years left. Residents in Kennington with a lease drawing near to 81 years remaining should seriously consider extending it sooner rather than later. Once the lease term has under 80 years left, under the relevant statute the landlord can calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Kennington with more than one hundred years remaining on the lease are often 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society |
Lease extensions in Kennington can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
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 Kennington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the freeholder of her one bedroom flat in Kennington, Melissa started the lease extension process just as the lease was coming close to the crucial 80-year threshold. The lease extension was concluded in January 2012. The landlord’s costs were negotiated to a tad over 600 pounds.
Dr G Johnson completed a one bedroom flat in Kennington in April 2012. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparable residencies in Kennington with a long lease were worth £290,000. The average amount of ground rent was £45 invoiced yearly. The lease concluded in 2099. Given that there were 73 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
An example of a Lease Extension decision for a Kennington property 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 was 74.77 years.