Kingsbury leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Kingsbury will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain cases you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Kingsbury,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kingsbury valuers.
Last October Cameron, came seriously close to the 80-year threshold with the lease on his garden flat in Kingsbury. Having purchased his home two decades ago, the length of the lease was of little relevance. Fortunately, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Cameron extended the lease at the eleventh hour in August. Cameron and the freeholder in the end settled on a premium of £5,000 . If the lease had dropped below eighty years, the amount would have increased by at least £950.
Mrs E Walker completed a one bedroom apartment in Kingsbury in June 2008. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Comparable homes in Kingsbury with a long lease were in the region of £260,200. The mid-range amount of ground rent was £65 collected yearly. The lease concluded on 8 January 2090. Having 66 years remaining we approximated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of fees.
An example of a Lease Extension decision 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 unexpired residue of the current lease was 70.25 years.