When it comes to domestic leasehold property in Kenton, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Residents in Kenton with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once a lease has less than eighty years remaining, under the current statute the landlord can calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Kenton 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
Lease extensions in Kenton can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Kenton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Jake, came very near to the eighty-year threshold with the lease on his one bedroom flat in Kenton. In buying his home twenty years previously, the lease term was of no concern. As luck would have it, he noticed he would imminently be paying an escalated premium for Extending the lease. Jake extended the lease just in the nick of time last March. Jake and the freeholder eventually agreed on a premium of £5,500 . If he had missed the deadline, the amount would have escalated by a minimum £1,150.
Last Summer we were approach by Dr H Cox , who moved into a one bedroom apartment in Kenton in February 2009. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative premises in Kenton with an extended lease were worth £240,600. The mid-range ground rent payable was £60 billed yearly. The lease came to a finish on 25 October 2087. Taking into account 62 years outstanding we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Kenton premises is 139/139A Masons Avenue in February 2010. this was a case with an absentee freeholder. As a result the leaseholders applied to Willesden County Court for an order dispensing with the giving of a notice of claim.14th October 2009 District Judge Brar granted a vesting order and the court directed that the matter should be transferred to this tribunal to determine the freehold premium. The tribunal concluded on a figure of £13,000 for the freehold interest This case was in relation to 1 flat. The unexpired residue of the current lease was 74 years.