When it comes to long leasehold property in Kingston Vale, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years left. Anyone in Kingston Vale with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has below 80 years remaining, under the relevant statute the freeholder can calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Kingston Vale with over one hundred years unexpired 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Kingston Vale leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Jake, came perilously near to the eighty-year threshold with the lease on his first floor flat in Kingston Vale. Having purchased his property two decades ago, the unexpired term was of minimal bearing. by good luck, he realised he needed to take action soon on a lease extension. Jake arranged for a lease extension just under the wire last June. Jake and the freeholder in the end agreed on the final figure of £6,000 . If the lease had slipped lower than eighty years, the figure would have become more exhorbitant by at least £925.
Mr V Baker bought a one bedroom apartment in Kingston Vale in January 2006. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparable flats in Kingston Vale with an extended lease were in the region of £275,000. The average amount of ground rent was £45 invoiced yearly. The lease elapsed on 15 March 2094. Given that there were 69 years unexpired we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.
An example of a Freehold Enfranchisement case for a Kingston Vale property is 19 St. Margarets Crescent in August 2010. the tribunal was of the view that the premium to be paid by the leaseholder for the freehold reversion was £51,983.00 This case was in relation to 3 flats. The unexpired term was 66.25 years.