When it comes to long leasehold premises in Kingstanding, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years left. Leasehold owners in Kingstanding with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once a lease has under 80 years remaining, under the relevant Act the landlord can calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Kingstanding with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Kingstanding 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.
Off the back of lengthy negotiations with the landlord of her two bedroom flat in Kingstanding, Chelsea commenced the lease extension process just as the lease was coming close to the critical 80-year deadline. The lease extension was concluded in October 2012. The landlord’s fees were restricted to approximately 650 GBP.
Last month we were contacted by Dr F Jones , who purchased a basement apartment in Kingstanding in July 2002. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Similar homes in Kingstanding with 100 year plus lease were valued around £174,200. The mid-range amount of ground rent was £55 invoiced yearly. The lease ended in 2075. Having 51 years outstanding we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including legals.
In 2012 we were phoned by Mr and Mrs. M Gunderson who, having took over the lease of a one bedroom flat in Kingstanding in August 2001. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable homes in Kingstanding with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 billed yearly. The lease terminated on 15 June 2095. Considering the 71 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including professional charges.