Kennington leases on residential deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Kennington will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not qualify. There are also strict deadlines and formalities to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Kennington with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Kennington can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge procuring Kennington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Callum, started to get near to the 80-year mark with the lease on his ground floor apartment in Kennington. In buying his flat two decades ago, the lease term was of no importance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Callum was able to extend his lease at the eleventh hour in January. Callum and the landlord ultimately settled on a premium of £6,000 . If the lease had descended below eighty years, the price would have become more costly by a minimum £1,075.
In 2009 we were contacted by Mr and Mrs. J Simon who, having moved into a basement flat in Kennington in April 2001. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Similar properties in Kennington with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 billed monthly. The lease ended in 2098. Given that there were 72 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 plus expenses.
An example of a Lease Extension matter before the tribunal for a Kennington flat 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 74.77 years.