As the the remaining lease term of a Kew domestic lease lessens so does its value and therefore the value of your property. Where the lease has, beyond one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Most flat owners in Kew will qualify for this right; nevertheless a conveyancer will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Kew with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Irrespective of whether you are a tenant or a freeholder in Kew,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kew valuers.
Evan owned a 2 bedroom flat in Kew on the market with a lease of just over fifty eight years remaining. Evan on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Evan to invoke his statutory right. Evan procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last October we were e-mailed by Dr C Jones , who moved into a ground floor apartment in Kew in January 2007. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical homes in Kew with 100 year plus lease were in the region of £191,400. The average ground rent payable was £55 collected quarterly. The lease elapsed in 2080. Given that there were 54 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of legals.
An example of a Lease Extension decision for a Kew residence is Flat 1 30 Ennismore Avenue in September 2010. the Tribunal adopted and arrived at a premium for the lease extension of £29, 900 This case affected 1 flat. The unexpired lease term was 68.34 years.