For anyone whose Kingswood property is held on a long lease, our message is clear – if you do nothing, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
Leasehold properties in Kingswood with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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. |
Lease extensions in Kingswood can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Kingswood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the landlord of her leasehold apartment in Kingswood, Jordan commenced the lease extension process just as her lease was nearing the critical 80-year threshold. The transaction was concluded in March 2014. The landlord’s fees were negotiated to a tad over 600 pounds.
Last month we were e-mailed by Mrs M Rodríguez , who acquired a purpose-built flat in Kingswood in February 2003. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar homes in Kingswood with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 collected quarterly. The lease terminated in 2104. Given that there were 79 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Last Christmas we were called by Dr Bethan Moreau , who bought a garden apartment in Kingswood in July 2007. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable properties in Kingswood with a long lease were valued around £275,000. The mid-range ground rent payable was £65 invoiced annually. The lease expiry date was on 24 August 2093. Given that there were 68 years left we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.