When it comes to residential leasehold premises in Kingswood, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years left. Residents in Kingswood with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When a lease has below eighty years remaining, under the current legislation the freeholder is entitled to calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Kingswood leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Eli was the the leasehold owner of a high value flat in Kingswood on the market with a lease of a few days over 59 years left. Eli on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Eli to exercise his statutory right. Eli obtained expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
Last Winter we were approach by Mr and Mrs. K White , who completed a first floor apartment in Kingswood in September 2000. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable properties in Kingswood with 100 year plus lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease terminated on 19 July 2104. Given that there were 80 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.
Last Winter we were called by Mr and Mrs. G Martínez , who took over the lease of a ground floor flat in Kingswood in July 2010. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparable premises in Kingswood with an extended lease were in the region of £280,000. The average ground rent payable was £45 collected per annum. The lease lapsed on 3 May 2093. Considering the 69 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.