The nearer a residential lease in Kentish Town gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of 99 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner as opposed to later. The majority of flat owners in Kentish Town will qualify for this right; that being said a conveyancer will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Kentish Town with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Kentish Town,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kentish Town valuers.
Last Summer Andrew, started to get near to the eighty-year mark with the lease on his one bedroom flat in Kentish Town. In buying his home two decades ago, the length of the lease was of no bearing. Thankfully, he realised he would imminently be paying an escalated premium for a lease extension. Andrew was able to extend his lease just under the wire in March. Andrew and the landlord ultimately settled on an amount of £5,000 . If he not met the deadline, the price would have escalated by at least £850.
In 2014 we were called by Ms F Davies who, having purchased a one bedroom apartment in Kentish Town in April 2002. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Identical homes in Kentish Town with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 collected yearly. The lease end date was on 2 October 2094. Taking into account 69 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
An example of a Lease Extension case for a Kentish Town flat 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 64.77 years.