Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Kentish Town. Inevitably, the period of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Kentish Town have the legal entitlement to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give due attention before putting off your Kentish Town lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
Leasehold premises in Kentish Town with in excess of 100 years outstanding 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 freehold unless savings on ground rent and service charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Kentish Town,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 experience and the close ties they enjoy with Kentish Town valuers.
Austin was the the leasehold owner of a high value apartment in Kentish Town being sold with a lease of fraction over 72 years unexpired. Austin informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Austin to invoke his statutory right. Austin procured expert legal guidance and secured an acceptable resolution informally and sell the property.
In 2012 we were contacted by Mrs Mollie James who, having took over the lease of a one bedroom flat in Kentish Town in June 2011. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable residencies in Kentish Town with an extended lease were valued about £261,600. The mid-range amount of ground rent was £60 billed quarterly. The lease concluded on 27 September 2077. Taking into account 52 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 plus fees.
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 related to 1 flat. The unexpired term was 64.77 years.