As the the remaining lease term of a Kingsbury domestic lease diminished so does its value and therefore the value of your property. If the lease has, in excess of one hundred years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending without delay. Most flat owners in Kingsbury will meet the qualifying criteria; however a conveyancing solicitor can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Kingsbury with more than one hundred years left 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 upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Kingsbury can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Kingsbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Adam, started to get close to the eighty-year mark with the lease on his two bedroom flat in Kingsbury. Having bought his property twenty years ago, the unexpired term was of minimal interest. As luck would have it, he recognised he needed to take steps soon on a lease extension. Adam arranged for a lease extension just under the wire last June. Adam and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If he not met the deadline, the price would have gone up by a minimum £975.
Last month we were e-mailed by Dr Madeleine Mitchell , who owned a newly refurbished flat in Kingsbury in January 2003. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparative flats in Kingsbury with 100 year plus lease were valued about £250,400. The mid-range amount of ground rent was £65 billed monthly. The lease ended on 20 March 2090. Given that there were 64 years left we approximated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 not including professional charges.
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 affected 1 flat. The remaining number of years on the lease was 70.25 years.