The re-sale value of a leasehold property in Keston is impacted by how many years the lease has remaining. If it is near to or less than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that formalities can be addressed ahead of the eighty year threshold. Current legislation enables Keston qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Keston,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Keston valuers.
Benjamin was the the leasehold owner of a studio apartment in Keston being marketed with a lease of just over 59 years left. Benjamin informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2013 we were phoned by Mr Samuel Ali who, having owned a one bedroom apartment in Keston in August 2005. We are asked if we could approximate the premium could be to extend the lease by an additional years. Identical flats in Keston with 100 year plus lease were valued about £216,000. The average amount of ground rent was £60 collected annually. The lease lapsed on 28 September 2082. Having 58 years remaining we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Keston residence is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case related to 1 flat. The unexpired term as at the valuation date was 50.57 years.