The nearer a residential lease in Kingsland gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond 125 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years left 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 consider extending without delay. The majority of flat owners in Kingsland will meet the qualifying criteria; nevertheless a lawyer should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Kingsland with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Kingsland can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Kingsland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leo owned a studio apartment in Kingsland on the market with a lease of a few days over 72 years outstanding. Leo on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leo to invoke his statutory right. Leo obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2011 we were e-mailed by Dr Megan Martínez who, having bought a purpose-built apartment in Kingsland in February 2006. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical properties in Kingsland with an extended lease were in the region of £205,000. The average ground rent payable was £50 collected quarterly. The lease came to a finish in 2103. Given that there were 78 years left we calculated the premium to the freeholder to extend the lease to be within £7,600 and £8,800 plus 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 related to 1 flat. The unexpired term as at the valuation date was 80.5 years.