Keston leases on domestic deteriorating in value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of 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 usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain cases you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Keston can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 dealing with Keston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Milo, came critically near to the 80-year mark with the lease on his one bedroom flat in Keston. In buying his flat twenty years previously, the lease term was of little importance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Milo extended the lease just in the nick of time in August. Milo and the landlord who owned the flat above eventually agreed on the final figure of £5,500 . If the lease had dropped lower than eighty years, the premium would have gone up by a minimum £900.
Dr P González moved into a first floor flat in Keston in January 2009. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable premises in Keston with 100 year plus lease were in the region of £181,600. The average ground rent payable was £55 billed yearly. The lease ended on 25 January 2077. Considering the 52 years outstanding we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Keston residence 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 unexpired lease term was 50.57 years.