Kentish Town residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Chelsea Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Lease extensions in Kentish Town can be a difficult process. We recommend you obtain 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 in-depth market knowledge dealing with Kentish Town 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 landlord of her garden flat in Kentish Town, Alisha started the lease extension process as the 80 year deadline was fast coming. The lease extension was finalised in October 2007. The landlord’s fees were kept to an absolute minimum.
Last Winter we were contacted by Mr and Mrs. S Harris , who bought a garden flat in Kentish Town in October 2007. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparable residencies in Kentish Town with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 invoiced annually. The lease terminated on 24 October 2102. Considering the 77 years left we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.
An example of a Lease Extension decision for a Kentish Town flat 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.