There is no doubt about it a leasehold flat or house in Kingsland is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 125 years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. The majority of flat owners in Kingsland will meet the qualifying criteria; nevertheless a lawyer will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Kingsland with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Kingsland,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kingsland valuers.
Luca owned a studio apartment in Kingsland being sold with a lease of a few days over 72 years unexpired. Luca informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Luca to exercise his statutory right. Luca obtained expert advice and secured an acceptable resolution informally and readily saleable.
Last year we were approach by Mr Reuben Khan , who completed a one bedroom flat in Kingsland in March 2001. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Similar flats in Kingsland with a long lease were valued around £248,000. The mid-range ground rent payable was £65 billed monthly. The lease expired on 15 July 2088. Considering the 63 years unexpired we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of costs.
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 related to 1 flat. The remaining number of years on the lease was 80.5 years.