Unfortunately that a Seven Kings 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 first few years due to the reduction being disguised by increases in the Seven Kings property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be due. The majority of flat owners in Seven Kings will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Seven Kings with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Using our service will provide you enhanced control over the value of your Seven Kings leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Harvey, came precariously close to the 80-year mark with the lease on his ground floor flat in Seven Kings. Having purchased his flat twenty years ago, the unexpired term was of little relevance. by good luck, he realised he needed to take steps soon on a lease extension. Harvey extended the lease just in the nick of time in September. Harvey and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If he had missed the deadline, the premium would have increased by at least £975.
In 2014 we were called by Mr and Mrs. U Wilson who, having completed a garden flat in Seven Kings in January 1999. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Similar homes in Seven Kings with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease terminated on 23 January 2098. Taking into account 73 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
An example of a Lease Extension matter before the tribunal for a Seven Kings premises 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 lease term was 61.36 years.