Seven Kings Lease Extension - Free Consultation

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Top reasons for Seven Kings lease extension


Main reasons to start your Seven Kings lease extension today:

A Seven Kings leasehold property depreciates with the years remaining on the lease.

Seven Kings leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Seven Kings enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Seven Kings you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

Seven Kings property with a lease extension is almost the same value as a freehold

Leasehold properties in Seven Kings with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lenders will not loan monies on a short lease

Lenders do not grant a mortgage on short residential leases. You are likely to encounter problems where you want to sell your flat in Seven Kings if the unexpired lease term is under the criteria set by the majority of banks and building societies. Different mortgage companies have varying criteria but generally they are looking for a minimum remaining lease term of 65 years.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
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;
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.
Leeds Building Society 85 years remaining from the start of the mortgage.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

Get in touch with one of our Seven Kings lease extension solicitors or enfranchisement solicitors

Retaining our service will provide you increased control over the value of your Seven Kings leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Seven Kings Lease Extension Example Cases:

Elijah, Seven Kings, North East London,

Elijah was the the leasehold proprietor of a high value apartment in Seven Kings on the market with a lease of a little over fifty eight years outstanding. Elijah informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Elijah to exercise his statutory right. Elijah procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.

Seven Kings case:

In 2012 we were contacted by Mr Matthew Collins who, having completed a ground floor apartment in Seven Kings in May 2004. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparable flats in Seven Kings with 100 year plus lease were in the region of £210,600. The mid-range ground rent payable was £45 invoiced yearly. The lease came to a finish in 2086. Taking into account 62 years remaining we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 not including fees.

Decision in Redbridge

An example of a Lease Extension case 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 related to 1 flat. The number of years remaining on the existing lease(s) was 61.36 years.