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 early years due to the depreciation being disguised by increases in the Seven Kings property market.Once your lease gets to 85ish years, you need to start thinking about 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 dips under 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Seven Kings will be able to extend under the legislation; however a conveyancing solicitor should 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 follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Subsequent to protracted correspondence with the freeholder of her first floor flat in Seven Kings, Morgan commenced the lease extension process just as the lease was nearing the crucial eighty-year mark. The legal work completed in June 2013. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were phoned by Mrs Natalie Sánchez , who completed a basement apartment in Seven Kings in November 2010. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable homes in Seven Kings with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 invoiced per annum. The lease elapsed on 21 May 2080. Given that there were 54 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of fees.
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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 61.36 years.