Unfortunately that a Kingsbury residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Kingsbury property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be due. Most flat owners in Kingsbury will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Kingsbury with more than one hundred years remaining 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Chelsea 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. |
| Halifax | 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 |
The lawyers that we work with procure Kingsbury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In recent months Harvey, came precariously near to the eighty-year mark with the lease on his first floor apartment in Kingsbury. In buying his flat two decades ago, the lease term was of no importance. Luckily, he noticed he needed to take action soon on Extending the lease. Harvey arranged for a lease extension at the eleventh hour in April. Harvey and the freeholder via the managing agents ultimately agreed on the final figure of £5,500 . If he not met the deadline, the premium would have increased by at least £875.
In 2013 we were phoned by Dr A Williams who, having completed a first floor flat in Kingsbury in October 2005. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparative premises in Kingsbury with an extended lease were worth £260,200. The average ground rent payable was £65 invoiced quarterly. The lease lapsed on 6 November 2092. Taking into account 66 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 not including fees.
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 number of years remaining on the existing lease(s) was 70.25 years.