Kingstanding leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Kingstanding tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Kingstanding you would be well advised to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Kingstanding with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Using our service gives you enhanced control over the value of your Kingstanding leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the landlord of her garden apartment in Kingstanding, Rhiannon started the lease extension process just as the lease was coming close to the critical 80-year deadline. The lease extension was finalised in January 2014. The landlord’s charges were restricted to a tad over 650 pounds.
Last Autumn we were contacted by Mr J Hill , who took over the lease of a purpose-built flat in Kingstanding in April 2007. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative properties in Kingstanding with an extended lease were in the region of £295,000. The mid-range ground rent payable was £50 billed every twelve months. The lease end date was in 2100. Given that there were 75 years remaining we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.
In 2013 we were called by Mr and Mrs. B Rogers who, having took over the lease of a ground floor apartment in Kingstanding in September 2000. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Similar properties in Kingstanding with an extended lease were in the region of £250,400. The average ground rent payable was £65 collected yearly. The lease concluded on 17 July 2089. Taking into account 64 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 plus expenses.