Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Kensal Rise. Inevitably, the period of lease left reduces as time goes by. This is often ignored and only becomes a problem when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Kensal Rise have the right to extend the lease for an additional 90 years under legislation. Do give careful consideration before putting off your Kensal Rise lease extension. Putting off that expense now only increases the price you will ultimately have to pay to extend your lease
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be worth the same as 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Retaining our service gives you better control over the value of your Kensal Rise leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Mason, started to get close to the eighty-year threshold with the lease on his studio apartment in Kensal Rise. In buying his property two decades ago, the unexpired term was of little bearing. Thankfully, he recognised he needed to take action soon on a lease extension. Mason extended the lease just ahead of time last June. Mason and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If the lease had dipped below eighty years, the figure would have increased by a minimum £1,000.
In 2014 we were called by Mr F François who, having took over the lease of a ground floor flat in Kensal Rise in July 1997. The question was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical residencies in Kensal Rise with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 invoiced yearly. The lease expired in 2089. Considering the 64 years remaining we calculated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 plus expenses.
An example of a Lease Extension matter before the tribunal for a Kensal Rise residence 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 number of years remaining on the existing lease(s) was 84.34 years.