The market value of a leasehold property in Keston depends on how long the lease has left to run. If it is near to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be addressed prior to the 80 year cut off point. Current legislation entitles Keston qualifying lessees to an additional term of ninety years on top of the unexpired term, at a notional rent (zero ground rent). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Irrespective of whether you are a tenant or a freeholder in Keston,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Keston valuers.
Logan owned a 2 bedroom apartment in Keston being sold with a lease of just over 59 years remaining. Logan on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Logan to invoke his statutory right. Logan procured expert advice and was able to make an informed judgement and deal with the matter and sell the property.
Dr Liam Martínez was assigned a lease of a studio apartment in Keston in March 1999. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable premises in Keston with a long lease were worth £210,000. The average ground rent payable was £50 invoiced every twelve months. The lease came to a finish on 5 September 2106. Considering the 80 years remaining we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.
An example of a Lease Extension decision 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 affected 1 flat. The number of years remaining on the existing lease(s) was 50.57 years.