As the length of the unexpired term of a Kingston Vale domestic lease lessens so does its value and therefore the value of your property. If the lease has, beyond 100 years remaining then this decrease may be of little impact however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. Most flat owners in Kingston Vale will qualify for this right; that being said a conveyancing solicitor can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Kingston Vale,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kingston Vale valuers.
Following unsuccessful discussions with the freeholder of her two bedroom apartment in Kingston Vale, Jessica started the lease extension process just as the lease was approaching the critical eighty-year deadline. The legal work was finalised in June 2005. The landlord’s charges were kept to an absolute minimum.
In 2009 we were contacted by Mr Lewis Davies who, having owned a one bedroom apartment in Kingston Vale in July 2012. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable premises in Kingston Vale with a long lease were valued around £205,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ran out in 2105. Taking into account 79 years outstanding we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
An example of a Freehold Enfranchisement case 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 related to 3 flats. The number of years remaining on the existing lease(s) was 66.25 years.