It’s a harsh truth that a Kingsland residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Kingsland property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term slips under 80 years, you will end up paying 50% 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 leasehold owners in Kingsland will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold properties in Kingsland with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Kingsland leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the freeholder of her garden flat in Kingsland, Rebecca initiated the lease extension process just as the lease was approaching the crucial eighty-year deadline. The transaction was finalised in November 2009. The landlord’s fees were negotiated to approximately five hundred GBP.
In 2010 we were phoned by Ms T Wood who, having owned a purpose-built flat in Kingsland in September 2001. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical homes in Kingsland with 100 year plus lease were valued around £285,000. The average ground rent payable was £45 billed every twelve months. The lease ended on 19 September 2098. Having 72 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.
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 lease term was 80.5 years.