Keston leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease falls below eighty years - otherwise a higher amount will be payable. Leasehold owners in Keston will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Keston with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
| 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 Keston,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Keston valuers.
Last year Dylan, started to get close to the eighty-year threshold with the lease on his first floor apartment in Keston. In buying his property two decades ago, the lease term was of no relevance. Thankfully, he became aware that he would imminently be paying way over the odds for a lease extension. Dylan was able to extend his lease just under the wire last July. Dylan and the freeholder via the managing agents eventually agreed on the final figure of £5,000 . If he not met the deadline, the price would have become more exhorbitant by at least £1,100.
Last Winter we were approach by Dr Connor Edwards , who bought a one bedroom flat in Keston in April 2003. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical residencies in Keston with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced per annum. The lease lapsed on 28 May 2100. Having 74 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.
An example of a Lease Extension case for a Keston property is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case was in relation to 1 flat. The unexpired term as at the valuation date was 50.57 years.