When it comes to residential leasehold premises in Kentish Town, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Leasehold owners in Kentish Town with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has fewer than eighty years outstanding, under the current legislation the landlord is entitled to calculate and levy a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Kentish Town with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
Engaging our service gives you enhanced control over the value of your Kentish Town leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jason was the the leasehold owner of a conversion apartment in Kentish Town on the market with a lease of fraction over fifty eight years outstanding. Jason informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jason to invoke his statutory right. Jason obtained expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Mr and Mrs. Y Khan moved into a garden apartment in Kentish Town in September 1999. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Identical premises in Kentish Town with a long lease were worth £218,000. The average amount of ground rent was £45 billed per annum. The lease expired on 19 June 2089. Taking into account 63 years left we calculated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 not including costs.
An example of a Lease Extension decision for a Kentish Town property is Flat 2 27 Mackeson Road in December 2012. The Tribunal assessed the value of the lease extension premium at £35,435 and rounded the figure to £35,500 This case related to 1 flat. The number of years remaining on the existing lease(s) was 64.77 years.