Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Kingsbury. Inevitably, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Kingsbury have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. Do give due attention before delaying your Kingsbury lease extension. Holding off that expense now only increases the price you will eventually have to pay for a lease extension
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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. |
Regardless of whether you are a tenant or a landlord in Kingsbury,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 Kingsbury valuers.
Dylan was the the leasehold proprietor of a studio flat in Kingsbury being sold with a lease of a few days over sixty years remaining. Dylan on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Dylan to exercise his statutory right. Dylan procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Dr Georgina García took over the lease of a garden apartment in Kingsbury in July 1996. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical homes in Kingsbury with a long lease were in the region of £243,000. The mid-range ground rent payable was £65 billed quarterly. The lease elapsed in 2088. Given that there were 63 years outstanding we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus professional charges.
An example of a Lease Extension matter before the tribunal 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 affected 1 flat. The unexpired term as at the valuation date was 70.25 years.