Kennington leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Kennington enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Kennington you really ought to see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Kennington leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is effected without delay
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Kennington,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kennington valuers.
Half a year ago Lewis, came dangerously close to the 80-year threshold with the lease on his one bedroom apartment in Kennington. Having purchased his flat 18 years ago, the length of the lease was of little significance. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Lewis arranged for a lease extension just ahead of time last May. Lewis and the freeholder ultimately settled on an amount of £5,500 . If the lease had dropped lower than 80 years, the price would have escalated by at least £950.
Dr Catherine Pérez owned a studio flat in Kennington in August 1995. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Comparable flats in Kennington with 100 year plus lease were valued around £189,000. The mid-range ground rent payable was £55 invoiced yearly. The lease came to a finish on 9 June 2079. Considering the 53 years remaining we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Kennington property is Ground Floor Flat 39 Bronsart Road in May 2010. Following a vesting order by West London County Court the Leasehold Valuation Tribunal concluded that the price to be paid for the extended lease of the premises was Thirteen Thousand Two hundred pounds (£13,200) in accordance with the valuation. The extended lease was granted for a term of 90 years from the expiry date of the Lease and at a peppercorn ground rent from the date of the vesting order. This case affected 1 flat. The unexpired lease term was 74.77 years.