Kentish Town leases on domestic properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Kentish Town will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some cases you may not be entitled. There are prescribed timetables and formalities to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Kentish Town with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced 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 lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year George, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Kentish Town. Having bought his flat 19 years ago, the length of the lease was of little significance. Thankfully, he realised he would soon be paying an inflated amount for Extending the lease. George extended the lease just in the nick of time in March. George and the freeholder via the managing agents subsequently agreed on an amount of £5,000 . If he failed to meet the deadline, the figure would have escalated by a minimum £850.
In 2009 we were contacted by Dr Seth Harris who, having purchased a studio flat in Kentish Town in July 2008. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparable residencies in Kentish Town with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 billed per annum. The lease lapsed on 12 March 2104. Taking into account 78 years outstanding we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.
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 term was 64.77 years.