The market value of a leasehold property in Kentish Town is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that formalities can be concluded prior to the eighty year mark. Current legislation enables Kentish Town qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Kentish Town leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the landlord of her one bedroom flat in Kentish Town, Naomi initiated the lease extension process just as her lease was nearing the all-important eighty-year mark. The legal work was concluded in November 2005. The freeholder’s fees were kept to an absolute minimum.
Last Spring we were approach by Mr and Mrs. O Bonnet , who owned a basement apartment in Kentish Town in June 1995. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable premises in Kentish Town with a long lease were valued about £265,000. The average amount of ground rent was £55 billed monthly. The lease expired in 2100. Taking into account 74 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
An example of a Lease Extension matter before the tribunal for a Kentish Town residence 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 lease term was 64.77 years.