Kingsbridge leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Kingsbridge will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain situations you may not qualify. There are prescribed timetables and formalities to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Kingsbridge 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 lawyer we work with provide it.
James owned a studio flat in Kingsbridge being sold with a lease of a little over 72 years outstanding. James informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were James to exercise his statutory right. James procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Dr H Campbell purchased a one bedroom apartment in Kingsbridge in May 2002. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Comparative residencies in Kingsbridge with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced annually. The lease expired in 2102. Having 76 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.
Mr and Mrs. V Rogers moved into a studio apartment in Kingsbridge in June 1998. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar premises in Kingsbridge with an extended lease were worth £257,800. The mid-range ground rent payable was £65 collected every twelve months. The lease ended in 2091. Having 65 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 not including fees.