The re-sale value of a leasehold property in Seven Kings is impacted by how long the lease has remaining. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be finalised prior to the 80 year threshold. Statute enables Seven Kings qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with procure Seven Kings 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 conveyancer we work with provide it.
Twenty four months ago David, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Seven Kings. In buying his flat two decades ago, the lease term was of little bearing. Fortunately, he noticed he would soon be paying way over the odds for Extending the lease. David arranged for a lease extension just under the wire last April. David and the freeholder via the management company subsequently settled on an amount of £5,500 . If he failed to meet the deadline, the amount would have become more costly by a minimum £900.
Mr and Mrs. R Bell completed a garden apartment in Seven Kings in November 2002. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparable flats in Seven Kings with an extended lease were valued about £245,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease concluded in 2094. Given that there were 68 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
An example of a Lease Extension matter before the tribunal for a Seven Kings residence is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case affected 1 flat. The unexpired term as at the valuation date was 61.36 years.