Unfortunately that a Kingswood residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Kingswood property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term slips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Kingswood will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Kingswood,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kingswood valuers.
Off the back of lengthy correspondence with the freeholder of her studio apartment in Kingswood, Alexandra started the lease extension process as the eighty year threshold was swiftly nearing. The legal work was finalised in October 2005. The freeholder’s costs were kept to an absolute minimum.
Mr Jasper Scott took over the lease of a purpose-built apartment in Kingswood in April 1999. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar premises in Kingswood with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced annually. The lease came to a finish on 17 February 2097. Having 72 years unexpired we calculated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of fees.
Mr and Mrs. Y Scott completed a newly refurbished flat in Kingswood in February 2003. The dilemma was if we could approximate the premium could be to prolong the lease by ninety years. Similar homes in Kingswood with 100 year plus lease were worth £235,600. The average amount of ground rent was £60 invoiced every twelve months. The lease finished in 2087. Having 62 years left we approximated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 not including legals.