When it comes to long leasehold property in Kingstanding, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Leasehold owners in Kingstanding with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once a lease has under eighty years left, under the current legislation the landlord is entitled to calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Kingstanding with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Lease extensions in Kingstanding can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Kingstanding lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Arthur was the the leasehold proprietor of a studio apartment in Kingstanding on the market with a lease of a few days over sixty years unexpired. Arthur on an informal basis spoke with his freeholder being 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 £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Arthur to invoke his statutory right. Arthur procured expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last Winter we were phoned by Dr Tommy Bennett , who purchased a basement apartment in Kingstanding in February 1998. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Identical properties in Kingstanding with an extended lease were worth £233,200. The average amount of ground rent was £60 invoiced quarterly. The lease ran out in 2087. Given that there were 61 years left we approximated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 plus fees.
Last month we were phoned by Mrs C Bell , who completed a one bedroom apartment in Kingstanding in January 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Kingstanding with a long lease were in the region of £171,800. The average ground rent payable was £55 collected per annum. The lease came to a finish in 2076. Taking into account 50 years outstanding we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 plus fees.