It’s a harsh truth that a Kingstanding residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Kingstanding property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be payable. The majority of flat owners in Kingstanding will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold residencies in Kingstanding with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Skipton Building Society | |
| Virgin | |
| Yorkshire Building Society |
The lawyers that we work with procure Kingstanding 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 conveyancing solicitor we work with provide it.
Last year Ali, came seriously near to the 80-year threshold with the lease on his purpose- built apartment in Kingstanding. In buying his home 19 years ago, the length of the lease was of little interest. Thankfully, he realised he needed to take action soon on Extending the lease. Ali arranged for a lease extension at the eleventh hour in June. Ali and the freeholder in the end settled on an amount of £5,000 . If he failed to meet the deadline, the amount would have gone up by at least £850.
In 2011 we were phoned by Mr and Mrs. V Ricardo who, having took over the lease of a newly refurbished apartment in Kingstanding in March 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Comparable residencies in Kingstanding with an extended lease were in the region of £191,400. The average ground rent payable was £55 invoiced yearly. The lease lapsed on 7 October 2080. Taking into account 54 years remaining we estimated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of costs.
Last Autumn we were e-mailed by Mr and Mrs. K Campbell , who owned a basement flat in Kingstanding in March 2005. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Kingstanding with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £45 billed every twelve months. The lease elapsed in 2100. Given that there were 74 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.