The re-sale value of a leasehold property in Keston is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that formalities can be concluded prior to the 80 year threshold. Leasehold Reform legislation entitles Keston qualifying lessees to an additional term of 90 years over and above the remaining term, at a nominal rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Keston with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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 |
| 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 Keston can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in this area.
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 a wealth of experience procuring Keston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathaniel owned a conversion flat in Keston being marketed with a lease of fraction over fifty eight years unexpired. Nathaniel on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Nathaniel to exercise his statutory right. Nathaniel obtained expert legal guidance and secured satisfactory resolution informally and sell the flat.
In 2009 we were called by Ms P Watson who, having moved into a ground floor apartment in Keston in October 2001. The question was if we could approximate the premium would be for a 90 year extension to my lease. Comparable homes in Keston with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced annually. The lease ran out in 2104. Taking into account 78 years left we calculated the premium to the landlord for the lease extension to be between £7,600 and £8,800 exclusive of professional charges.
An example of a Lease Extension case for a Keston flat is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case was in relation to 1 flat. The unexpired residue of the current lease was 50.57 years.