As the length of the unexpired term of a Kensington domestic lease diminished so does its value and therefore the value of your property. Where the lease has, more than 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner than later. The majority of flat owners in Kensington will qualify for this right; that being said a lawyer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The lawyers that we work with handle Kensington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to lengthy discussions with the freeholder of her ground floor flat in Kensington, Imogen started the lease extension process just as the lease was approaching the crucial 80-year deadline. The lease extension was concluded in September 2005. The landlord’s fees were restricted to about 500 pounds.
Mr and Mrs. E Kelly completed a first floor apartment in Kensington in March 1999. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Identical premises in Kensington with a long lease were worth £225,400. The mid-range ground rent payable was £45 collected yearly. The lease ran out on 19 March 2089. Considering the 64 years remaining we calculated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including fees.
An example of a Lease Extension decision for a Kensington residence is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case was in relation to 1 flat. The unexpired residue of the current lease was 37.79 years.