For anyone whose Kingston Vale flat is held on a long lease, the message is clear – if you do nothing, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.
Leasehold residencies in Kingston Vale with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 conveyancing solicitors that we work with handle Kingston Vale 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.
Trailing protracted discussions with the landlord of her one bedroom flat in Kingston Vale, Sarah initiated the lease extension process just as her lease was coming close to the critical eighty-year mark. The legal work was finalised in August 2009. The landlord’s charges were kept to an absolute minimum.
Mr Evan Williams acquired a purpose-built apartment in Kingston Vale in June 2007. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Similar homes in Kingston Vale with an extended lease were valued about £290,000. The mid-range ground rent payable was £45 invoiced per annum. The lease expiry date was in 2098. Given that there were 72 years remaining we approximated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a Kingston Vale property is 19 St. Margarets Crescent in August 2010. the tribunal was of the view that the premium to be paid by the leaseholder for the freehold reversion was £51,983.00 This case affected 3 flats. The unexpired term as at the valuation date was 66.25 years.