There is no doubt about it a leasehold property in Kentish Town is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. Most flat owners in Kentish Town will qualify for this right; nevertheless a lawyer should be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
The conveyancers that we work with procure Kentish Town lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of unsuccessful correspondence with the freeholder of her basement apartment in Kentish Town, Emma commenced the lease extension process as the 80 year mark was rapidly coming. The transaction completed in May 2014. The landlord’s charges were restricted to under 550 GBP.
In 2014 we were contacted by Ms Isabel Thomas who, having completed a ground floor flat in Kentish Town in June 1996. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Comparable properties in Kentish Town with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 collected quarterly. The lease terminated on 23 August 2080. Considering the 54 years unexpired we estimated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 plus legals.
An example of a Lease Extension decision for a Kentish Town premises 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 affected 1 flat. The unexpired term was 64.77 years.