Unfortunately that a Kingsbury residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Kingsbury property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining falls below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Kingsbury will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Kingsbury,the lease extension lawyers that we work with will always be willing 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 Rory, started to get near to the 80-year threshold with the lease on his two bedroom flat in Kingsbury. In buying his home 19 years previously, the length of the lease was of little bearing. Luckily, he became aware that he needed to take action soon on Extending the lease. Rory was able to extend his lease at the eleventh hour in September. Rory and the freeholder eventually settled on sum of £6,000 . If the lease had descended to less than 80 years, the sum would have escalated by a minimum £900.
Mr N Taylor owned a one bedroom apartment in Kingsbury in September 2009. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar premises in Kingsbury with a long lease were in the region of £208,600. The average ground rent payable was £60 collected per annum. The lease came to a finish in 2083. Considering the 57 years remaining we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of costs.
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 affected 1 flat. The unexpired lease term was 70.25 years.