Keston leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Keston will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless 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 in-depth market knowledge and the close ties they enjoy with Keston valuers.
In 2014 Jonathan, came perilously near to the eighty-year threshold with the lease on his two bedroom apartment in Keston. In buying his property 18 years previously, the length of the lease was of little interest. Luckily, he became aware that he would imminently be paying an inflated amount for Extending the lease. Jonathan extended the lease just under the wire in September. Jonathan and the landlord who owned the flat above eventually settled on a premium of £5,500 . If the lease had slipped lower than eighty years, the amount would have escalated by at least £850.
Last Summer we were phoned by Dr U Hall , who bought a one bedroom flat in Keston in January 1997. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Identical premises in Keston with an extended lease were in the region of £208,600. The average ground rent payable was £60 collected monthly. The lease elapsed on 27 July 2077. Considering the 57 years unexpired we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 plus expenses.
An example of a Lease Extension matter before the tribunal 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 related to 1 flat. The number of years remaining on the existing lease(s) was 50.57 years.