When it comes to long leasehold premises in Seven Kings, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Anyone in Seven Kings with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. When the lease term has under 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Skipton Building Society | |
| The Mortgage Works |
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.
Joshua was the the leasehold proprietor of a high value apartment in Seven Kings being sold with a lease of fraction over 59 years outstanding. Joshua informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Joshua to invoke his statutory right. Joshua obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last Summer we were approach by Dr Y Thompson , who acquired a basement apartment in Seven Kings in September 2011. The dilemma was if we could approximate the price would be to extend the lease by ninety years. Similar residencies in Seven Kings with an extended lease were worth £265,000. The average amount of ground rent was £55 collected monthly. The lease finished on 2 November 2100. Having 74 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Seven Kings property 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 residue of the current lease was 61.36 years.