Kenilworth leases on residential deteriorating in value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Kenilworth will mostly qualify for a lease extension; however a solicitor will check if you qualify. In certain situations you may not be entitled. There are also strict deadlines and formalities to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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:
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Irrespective of whether you are a tenant or a landlord in Kenilworth,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kenilworth valuers.
Trailing lengthy negotiations with the landlord of her one bedroom apartment in Kenilworth, Lauren started the lease extension process just as the lease was coming close to the all-important 80-year deadline. The transaction was finalised in July 2015. The landlord’s charges were negotiated to below 700 pounds.
Last Winter we were e-mailed by Mr and Mrs. M Parker , who was assigned a lease of a recently refurbished flat in Kenilworth in September 1998. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Comparable homes in Kenilworth with 100 year plus lease were valued about £218,000. The average ground rent payable was £45 invoiced per annum. The lease ended in 2089. Having 63 years as a residual term we calculated the premium to the landlord for the lease extension to be between £17,100 and £19,800 plus professional charges.
In 2010 we were called by Mr and Mrs. Y Jones who, having was assigned a lease of a one bedroom flat in Kenilworth in July 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Kenilworth with an extended lease were worth £270,000. The average amount of ground rent was £55 collected every twelve months. The lease end date was in 2100. Considering the 74 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.