As the length of the unexpired term of a Kentish Town residential lease decreases so does its value and therefore the value of your property. If the residual term has, more than one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Kentish Town will qualify for this right; that being said a lawyer can confirm if you are eligible to extend your lease. In certain 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 unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Kentish Town can be a difficult process. We recommend you get guidance from a lawyer and valuer 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 dealing with Kentish Town lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Daniel was the the leasehold proprietor of a conversion apartment in Kentish Town on the market with a lease of just over 61 years remaining. Daniel on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Daniel to invoke his statutory right. Daniel procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Dr M Brown moved into a one bedroom flat in Kentish Town in August 2000. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable premises in Kentish Town with 100 year plus lease were worth £193,400. The average amount of ground rent was £65 collected every twelve months. The lease end date was on 3 February 2085. Given that there were 59 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus fees.
An example of a Lease Extension matter before the tribunal 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 residue of the current lease was 64.77 years.