The market value of a leasehold property in Kingsland depends on how long the lease has left to run. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be concluded ahead of the eighty year mark. Statute entitles Kingsland qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Kingsland with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The conveyancing solicitors that we work with undertake Kingsland lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In the wake of 9 months of unsuccessful correspondence with the freeholder of her garden flat in Kingsland, Naomi started the lease extension process as the 80 year mark was quickly approaching. The transaction was concluded in February 2014. The freeholder’s fees were kept to an absolute minimum.
Mr B García acquired a recently refurbished flat in Kingsland in March 1997. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Similar residencies in Kingsland with a long lease were valued around £250,400. The average amount of ground rent was £65 invoiced yearly. The lease ended in 2090. Taking into account 64 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Kingsland premises 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 unexpired lease term was 80.5 years.