It’s an underpublicised truth that a Kingstanding residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Kingstanding property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. Most flat owners in Kingstanding will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold properties in Kingstanding with in excess of one hundred years outstanding 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure 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 lawyer we work with provide it.
16 months ago Ben, came critically close to the eighty-year threshold with the lease on his two bedroom flat in Kingstanding. In buying his flat two decades ago, the unexpired term was of minimal importance. As luck would have it, he noticed he needed to take action soon on a lease extension. Ben extended the lease at the eleventh hour last June. Ben and the landlord subsequently agreed on sum of £5,000 . If the lease had slipped to less than 80 years, the figure would have escalated by a minimum £1,125.
Mr and Mrs. W Morgan took over the lease of a purpose-built flat in Kingstanding in March 1997. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative premises in Kingstanding with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £45 collected monthly. The lease elapsed in 2099. Taking into account 74 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
Mr N Green took over the lease of a one bedroom apartment in Kingstanding in July 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable flats in Kingstanding with a long lease were in the region of £243,000. The mid-range amount of ground rent was £65 billed per annum. The lease concluded on 24 August 2088. Having 63 years outstanding we estimated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 plus professional charges.