Kensal Rise leases on domestic deteriorating in value. if 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 unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Kensal Rise will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and procedures to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Kensal Rise with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Kensal Rise leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the landlord of her leasehold flat in Kensal Rise, Abigail commenced the lease extension process as the 80 year threshold was rapidly advancing. The legal work completed in November 2005. The landlord’s costs were kept to an absolute minimum.
In 2013 we were phoned by Mrs Kirsty Rogers who, having completed a one bedroom flat in Kensal Rise in February 2005. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparable homes in Kensal Rise with 100 year plus lease were worth £261,600. The average amount of ground rent was £60 invoiced yearly. The lease ended in 2077. Considering the 52 years unexpired we estimated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 not including legals.
An example of a Lease Extension matter before the tribunal for a Kensal Rise flat 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 remaining number of years on the lease was 84.34 years.