As the length of the unexpired term of a Kennington domestic lease decreases so does its value and therefore the value of your property. If the residual term has, beyond 125 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Kennington will qualify for this right; nevertheless a lawyer should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Kennington with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Kennington,the lease extension solicitors that we work with will always be willing 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.
Following lengthy correspondence with the landlord of her one bedroom apartment in Kennington, Ellen commenced the lease extension process as the eighty year mark was quickly approaching. The lease extension was finalised in April 2010. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were e-mailed by Mr and Mrs. D James , who bought a studio flat in Kennington in April 2008. We are asked if we could approximate the premium would be to extend the lease by ninety years. Similar flats in Kennington with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 collected annually. The lease elapsed on 16 July 2095. Given that there were 70 years left we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including 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 term was 74.77 years.