There is no doubt about it a leasehold flat or house in King's Cross is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 125 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner than later. Many flat owners in King's Cross will meet the qualifying criteria; however a lawyer should be able to advise 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 under two years.
Leasehold properties in King's Cross with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in King's Cross,the lease extension solicitors 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 King's Cross valuers.
Last year Omar, started to get near to the eighty-year threshold with the lease on his first floor flat in King's Cross. In buying his home two decades ago, the unexpired term was of no bearing. Thankfully, he recognised he would imminently be paying way over the odds for a lease extension. Omar was able to extend his lease just ahead of time in March. Omar and the freeholder via the managing agents ultimately agreed on the final figure of £5,500 . If the lease had gone below 80 years, the sum would have escalated by at least £1,075.
In 2014 we were contacted by Dr W François who, having moved into a one bedroom flat in King's Cross in July 2004. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical residencies in King's Cross with 100 year plus lease were valued around £232,800. The average amount of ground rent was £45 invoiced per annum. The lease came to a finish in 2090. Taking into account 65 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.
An example of a Lease Extension matter before the tribunal for a King's Cross premises is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case related to 1 flat. The unexpired lease term was 66.8 years.