Kingstanding leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Kingstanding will mostly qualify for a lease extension; however a solicitor will check your eligibility. In certain cases you may not be entitled. There are also strict deadlines and steps to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Kingstanding with over 100 years unexpired on the lease are sometimes 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 purchasing the freehold unless savings on ground rent and service charges merit 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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. |
Using our service gives you better control over the value of your Kingstanding leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Matthew owned a conversion flat in Kingstanding being sold with a lease of a little over fifty eight years unexpired. Matthew 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 new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Matthew to exercise his statutory right. Matthew obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last Spring we were approach by Mr and Mrs. S Mason , who completed a one bedroom flat in Kingstanding in May 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Kingstanding with 100 year plus lease were in the region of £189,000. The mid-range ground rent payable was £55 collected yearly. The lease terminated on 18 August 2079. Given that there were 53 years as a residual term we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including costs.
In 2011 we were approached by Dr A Smith who, having owned a newly refurbished apartment in Kingstanding in January 1999. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Identical residencies in Kingstanding with an extended lease were in the region of £290,000. The average amount of ground rent was £45 invoiced per annum. The lease ended in 2099. Taking into account 73 years left we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.