Chances are that if you own a flat in Kingsland you actually own a long leasehold interest over your property
Leasehold properties in Kingsland with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle 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 lawyer we work with provide it.
Archie owned a 2 bedroom flat in Kingsland on the market with a lease of a few days over 61 years remaining. Archie informally contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Archie to invoke his statutory right. Archie obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Dr G Scott acquired a studio flat in Kingsland in January 2004. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Kingsland with 100 year plus lease were valued around £225,800. The average ground rent payable was £60 invoiced annually. The lease expired on 3 September 2086. Taking into account 60 years remaining we calculated the premium to the freeholder to extend the lease to be within £25,700 and £29,600 not including fees.
An example of a Lease Extension decision for a Kingsland flat 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 affected 1 flat. The unexpired residue of the current lease was 80.5 years.