With a residential leasehold property in Kentish Town, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Leasehold owners in Kentish Town with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. When the lease term has below 80 years left, under the relevant Act the landlord is entitled to calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Kentish Town with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
The conveyancing solicitors that we work with undertake Kentish Town 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 conveyancing solicitor we work with provide it.
Following protracted discussions with the landlord of her first floor flat in Kentish Town, Olivia started the lease extension process as the 80 year mark was rapidly nearing. The lease extension completed in October 2015. The freeholder’s fees were negotiated to approximately six hundred pounds.
Mr and Mrs. T Evans acquired a garden flat in Kentish Town in September 2006. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar homes in Kentish Town with an extended lease were worth £265,000. The mid-range ground rent payable was £50 billed per annum. The lease lapsed in 2098. Given that there were 73 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
An example of a Lease Extension case for a Kentish Town premises is Flat 2 27 Mackeson Road in December 2012. The Tribunal assessed the value of the lease extension premium at £35,435 and rounded the figure to £35,500 This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 64.77 years.