The value of Kingsland leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is below than eighty years
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 also be not less than 75 years 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Kingsland can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience dealing with Kingsland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Henry, came very close to the eighty-year threshold with the lease on his one bedroom flat in Kingsland. Having purchased his home two decades ago, the unexpired term was of no concern. Luckily, he realised he would imminently be paying an escalated premium for Extending the lease. Henry arranged for a lease extension at the eleventh hour last May. Henry and the landlord ultimately settled on an amount of £6,000 . If the lease had descended below 80 years, the figure would have gone up by at least £1,000.
Last year we were e-mailed by Dr Stanley Clark , who moved into a first floor apartment in Kingsland in November 1996. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Identical homes in Kingsland with 100 year plus lease were valued around £189,000. The average ground rent payable was £55 invoiced every twelve months. The lease came to a finish on 26 May 2079. Considering the 53 years outstanding we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.
An example of a Lease Extension matter before the tribunal for a Kingsland residence is 5C Stoke Newington Road in April 2010. the Tribunal therefore concludes that the premium to be paid for the extended lease is £700.00 This case was in relation to 1 flat. The unexpired term as at the valuation date was 80.5 years.