Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Kingston Vale. Clearly, the period of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Kingston Vale have the legal entitlement to extend the lease for an additional 90 years under Leasehold Reform legislation. Do give careful deliberation before delaying your Kingston Vale lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Kingston Vale leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Mason owned a high value flat in Kingston Vale being marketed with a lease of fraction over sixty years remaining. Mason informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Mason to invoke his statutory right. Mason procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Mr C Morgan completed a one bedroom flat in Kingston Vale in January 2006. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Kingston Vale with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 collected annually. The lease concluded in 2099. Taking into account 74 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
An example of a Freehold Enfranchisement case for a Kingston Vale residence 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 was in relation to 3 flats. The unexpired term was 66.25 years.