It’s a harsh certainty that a Kenley residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Kenley property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term falls below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Kenley will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
Using our service will provide you increased control over the value of your Kenley leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Alfie, came critically near to the 80-year threshold with the lease on his studio apartment in Kenley. Having purchased his flat two decades ago, the length of the lease was of minimal interest. Luckily, he realised he would imminently be paying an escalated premium for a lease extension. Alfie extended the lease at the eleventh hour last April. Alfie and the freeholder subsequently settled on a premium of £6,000 . If he not met the deadline, the price would have increased by a minimum £950.
In 2010 we were approached by Mr E Jackson who, having took over the lease of a garden flat in Kenley in January 1995. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Identical flats in Kenley with 100 year plus lease were valued around £285,000. The average ground rent payable was £55 billed yearly. The lease termination date was in 2105. Considering the 79 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.
An example of a Freehold Enfranchisement decision for a Kenley property is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case affected 6 flats. The unexpired term was 78.32 years.