For those whose Kingsland home is held on a long lease, our message is clear – if no remedial action is taken, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
Leasehold properties in Kingsland with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Kingsland,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kingsland valuers.
Half a year ago Jamie, came very close to the eighty-year threshold with the lease on his garden apartment in Kingsland. Having purchased his property two decades ago, the unexpired term was of little bearing. Thankfully, he noticed he would soon be paying way over the odds for Extending the lease. Jamie arranged for a lease extension at the eleventh hour last June. Jamie and the freeholder eventually agreed on the final figure of £5,000 . If he failed to meet the deadline, the price would have become more costly by a minimum £850.
In 2013 we were e-mailed by Mr and Mrs. G Clarke who, having owned a purpose-built apartment in Kingsland in January 2010. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparable homes in Kingsland with a long lease were in the region of £198,800. The average ground rent payable was £55 billed monthly. The lease concluded on 10 September 2081. Having 55 years remaining we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of expenses.
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 was in relation to 1 flat. The unexpired term as at the valuation date was 80.5 years.