The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Kingstanding may extend the lease for an additional 90 years in accordance with legislation. Do give careful consideration before delaying your Kingstanding lease extension. Putting off that expense now simply escalates the premium you will ultimately have to pay to extend the lease.
Leasehold premises in Kingstanding with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a landlord in Kingstanding,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kingstanding valuers.
Luke owned a conversion apartment in Kingstanding being sold with a lease of just over 61 years left. Luke informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Luke to invoke his statutory right. Luke obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr Dylan King was assigned a lease of a purpose-built apartment in Kingstanding in July 2011. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparable properties in Kingstanding with 100 year plus lease were valued about £257,800. The average ground rent payable was £65 invoiced annually. The lease end date was on 18 September 2091. Considering the 65 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of costs.
In 2011 we were e-mailed by Mr and Mrs. A Brown who, having acquired a garden flat in Kingstanding in April 1997. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable homes in Kingstanding with 100 year plus lease were in the region of £191,400. The mid-range amount of ground rent was £55 collected every twelve months. The lease terminated in 2080. Considering the 54 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 plus professional charges.