Kenley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Kenley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Kenley you must check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Kenley flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
Leasehold premises in Kenley with over one hundred 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service gives you enhanced control over the value of your Kenley leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the landlord of her studio flat in Kenley, Emily commenced the lease extension process as the 80 year threshold was rapidly nearing. The lease extension was finalised in April 2009. The freeholder’s charges were restricted to under 500 GBP.
Mrs J Wright moved into a purpose-built flat in Kenley in August 2010. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative properties in Kenley with an extended lease were in the region of £235,200. The average amount of ground rent was £45 collected per annum. The lease elapsed in 2091. Having 66 years left we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Kenley property is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case was in relation to 6 flats. The unexpired term was 78.32 years.