On the balance of probabilities if you own a flat in Kensal Rise you actually own a long leasehold interest over your property
Leasehold premises in Kensal Rise with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Kensal Rise,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kensal Rise valuers.
Trailing unsuccessful correspondence with the freeholder of her studio flat in Kensal Rise, Naomi started the lease extension process as the eighty year threshold was rapidly approaching. The lease extension completed in October 2013. The landlord’s costs were negotiated to under 500 GBP.
Last month we were approach by Dr Elijah Rodríguez , who took over the lease of a basement apartment in Kensal Rise in February 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Similar flats in Kensal Rise with an extended lease were valued about £166,400. The mid-range amount of ground rent was £60 collected quarterly. The lease came to a finish in 2080. Given that there were 54 years unexpired we approximated the compensation to the landlord 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 Kensal Rise property is 85A Chevening Road in August 2013. the Tribunals conclusions resulted in a payment of a premium for the new lease in the sum of £11,211 This case was in relation to 1 flat. The unexpired lease term was 84.34 years.