The nearer a residential lease in Kingsland gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, in excess of 125 years remaining then this decrease may be fractional however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease without delay. Most flat owners in Kingsland will meet the qualifying criteria; however a lawyer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
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 protracted negotiations with the freeholder of her one bedroom apartment in Kingsland, Natasha initiated the lease extension process just as the lease was nearing the crucial 80-year threshold. The legal work was finalised in August 2008. The landlord’s fees were kept to an absolute minimum.
In 2012 we were e-mailed by Mr T David who, having completed a ground floor apartment in Kingsland in June 2012. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable residencies in Kingsland with 100 year plus lease were in the region of £230,800. The mid-range amount of ground rent was £60 collected yearly. The lease lapsed in 2085. Considering the 60 years left we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 not including fees.
An example of a Lease Extension decision 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 was in relation to 1 flat. The unexpired term was 80.5 years.