The closer a residential lease in Kingston upon Thames nears to zero years unexpired, the more it reduces the value of the property. If the lease has, over one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Kingston upon Thames will qualify for this right; nevertheless a conveyancing solicitor should be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you increased control over the value of your Kingston upon Thames leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Alfie, started to get close to the 80-year mark with the lease on his garden flat in Kingston upon Thames. In buying his flat two decades ago, the lease term was of no importance. Fortunately, he realised he would soon be paying an inflated amount for Extending the lease. Alfie extended the lease just under the wire last July. Alfie and the freeholder via the managing agents ultimately agreed on the final figure of £5,500 . If he had missed the deadline, the figure would have increased by at least £1,100.
Mr Aiden Bailey took over the lease of a one bedroom flat in Kingston upon Thames in November 2009. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparable residencies in Kingston upon Thames with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced annually. The lease came to a finish in 2089. Taking into account 63 years outstanding we calculated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of fees.
An example of a Lease Extension decision for a Kingston upon Thames property is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case was in relation to 1 flat.