Kingsbury leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Kingsbury will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not qualify. There are also strict deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Kingsbury with in excess of one hundred years left on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service gives you enhanced control over the value of your Kingsbury leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago David, started to get close to the eighty-year mark with the lease on his garden apartment in Kingsbury. In buying his home 18 years previously, the unexpired term was of no bearing. Fortunately, it dawned on him that he would imminently be paying way over the odds for a lease extension. David was able to extend his lease just in the nick of time last September. David and the freeholder subsequently agreed on an amount of £6,000 . If the lease had slipped below eighty years, the figure would have escalated by a minimum £900.
Last Christmas we were contacted by Mrs E Davis , who purchased a recently refurbished flat in Kingsbury in May 2001. We are asked if we could approximate the price would be to prolong the lease by 90 years. Similar residencies in Kingsbury with a long lease were worth £189,000. The average ground rent payable was £55 collected annually. The lease came to a finish in 2079. Considering the 53 years remaining we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus expenses.
An example of a Lease Extension case for a Kingsbury residence is 27B Hillside in February 2010. the resulting premium, all other aspects of the valuation having been agreed between the parties was set at £8,250 This case was in relation to 1 flat. The remaining number of years on the lease was 70.25 years.