Kenton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Kenton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Kenton you would be well advised to see if your lease has between 70 and 90 years left. There are good reasons why a Kenton flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
Leasehold properties in Kenton with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
Following unsuccessful discussions with the landlord of her two bedroom flat in Kenton, Alisha started the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The transaction was concluded in October 2010. The landlord’s fees were kept to an absolute minimum.
Last April we were contacted by Mr Ryan Girard , who completed a one bedroom flat in Kenton in October 1996. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative homes in Kenton with an extended lease were worth £171,800. The average amount of ground rent was £55 invoiced monthly. The lease ran out in 2075. Having 50 years remaining we approximated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus costs.
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 term as at the valuation date was 74 years.