The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Kenton may extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Kenton lease extension. Postponing that expense today simply increases the amount you will eventually be required to pay for a lease extension.
Leasehold premises in Kenton with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle 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.
Harrison was the the leasehold owner of a studio flat in Kenton on the market with a lease of just over 59 years outstanding. Harrison informally spoke with his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
In 2014 we were phoned by Ms Emily Mercier who, having took over the lease of a recently refurbished flat in Kenton in August 2003. The question was if we could approximate the price could be to prolong the lease by 90 years. Identical premises in Kenton with an extended lease were in the region of £260,200. The mid-range amount of ground rent was £65 invoiced monthly. The lease ran out on 24 October 2091. Given that there were 66 years outstanding we approximated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of fees.
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 unexpired term as at the valuation date was 74 years.