Unfortunately that a Kingsland residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Kingsland property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term dips below eighty years, you will then be required to pay half 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 additional value that a lease extension will add the property Most flat owners in Kingsland will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold properties in Kingsland with over 100 years unexpired on the lease are sometimes 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 service charges justify it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage at the outset 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Kingsland,the lease extension lawyers 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.
Blake was the the leasehold proprietor of a conversion apartment in Kingsland on the market with a lease of a few days over 59 years remaining. Blake on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Blake to invoke his statutory right. Blake procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2013 we were e-mailed by Mr and Mrs. P Phillips who, having acquired a first floor flat in Kingsland in February 2000. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Similar properties in Kingsland with 100 year plus lease were valued about £257,800. The average ground rent payable was £65 collected annually. The lease lapsed on 16 February 2091. Considering the 65 years remaining we approximated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of legals.
An example of a Lease Extension decision for a Kingsland property 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.