The closer a residential lease in Kenton gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Most flat owners in Kenton will qualify for this right; nevertheless a conveyancer should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Kenton with in excess of 100 years remaining 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Engaging our service will provide you enhanced control over the value of your Kenton leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Nathan owned a studio flat in Kenton on the market with a lease of just over fifty eight years unexpired. Nathan informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Nathan to exercise his statutory right. Nathan procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mrs Abigail Williams completed a newly refurbished flat in Kenton in July 2003. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Kenton with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed monthly. The lease finished on 28 September 2106. Considering the 80 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Kenton residence 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 was 74 years.