Why you should start your Kenton lease extension
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Main reasons to commence your Kenton lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/kenton">Kenton</a> property value </h4>
<p> With a long leasehold property in Kenton, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are less than eighty years remaining. Residents in Kenton with a lease nearing 81 years left should seriously consider extending it as soon as possible. When the lease term has below 80 years remaining, under the current Act the landlord is entitled to calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable. <h4>Kenton property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold premises in Kenton with more than 100 years unexpired on the lease are sometimes regarded as a ‘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 estate charges warrant it. <h4>Lending institutions will not issue a mortgage on a short lease</h4> Banks and building societies are making their criteria more stringent and many now expect flats to have at least sixty if not seventy years remaining at the expiry of the mortgage. Considering many flats in Kenton were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they if they are to be mortgageable.
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<tr><th>Lender</th>
<th> Requirement
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
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<td>Coventry Building Society</td>
<td> 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.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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<h4> Get in touch with one of our Kenton lease extension solicitors or enfranchisement solicitors
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The conveyancing solicitors that we work with undertake Kenton 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.
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Kenton Lease Extension Example Cases:
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<h5> Rhiannon, Kenton, North London,</h5>
<p> Subsequent to lengthy negotiations with the landlord of her leasehold apartment in Kenton, Rhiannon started the lease extension process just as her lease was nearing the critical 80-year threshold. The transaction was concluded in May 2006. The freeholder’s charges were kept to an absolute minimum.
<h5>Kenton case:</h5>
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In 2012 we were called by Dr O Miller who, having acquired a garden flat in Kenton in July 2007. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Kenton with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed monthly. The lease ended in 2100. Considering the 74 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
<div> <h5>Decision in Harrow</h5>
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An example of a Freehold Enfranchisement matter before the tribunal for a Kenton flat 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 affected 1 flat. The remaining number of years on the lease was 74 years.
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