Kingston upon Thames leases on residential properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Kingston upon Thames will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some situations you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Kingston upon Thames with more than one hundred years remaining 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 property. In such circumstances there is often little to be gained by buying the freehold 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
The lawyers that we work with handle Kingston upon Thames 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 lawyer we work with provide it.
Last year Daniel, came critically close to the eighty-year mark with the lease on his purpose- built apartment in Kingston upon Thames. In buying his home 19 years ago, the unexpired term was of no concern. Fortunately, he noticed he would imminently be paying way over the odds for Extending the lease. Daniel was able to extend his lease at the eleventh hour last April. Daniel and the landlord ultimately settled on a premium of £6,000 . If he failed to meet the deadline, the amount would have increased by at least £925.
In 2014 we were contacted by Mr C Cook who, having completed a ground floor apartment in Kingston upon Thames in January 2009. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar premises in Kingston upon Thames with a long lease were valued about £183,600. The average amount of ground rent was £65 collected quarterly. The lease expiry date was in 2082. Considering the 57 years left we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including expenses.
An example of a Lease Extension matter before the tribunal for a Kingston upon Thames premises is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case was in relation to 1 flat.