The market value of a leasehold property in Keston is impacted by how long the lease has remaining. If it is near to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded ahead of the eighty year cut off point. Leasehold Reform legislation enables Keston qualifying lessees to acquire a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Keston,the lease extension lawyers 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.
During the course of the last few months William, came very close to the eighty-year mark with the lease on his garden flat in Keston. Having purchased his flat twenty years previously, the lease term was of no importance. As luck would have it, he noticed he would soon be paying an inflated amount for a lease extension. William arranged for a lease extension at the eleventh hour last April. William and the landlord who owned the flat above subsequently settled on a premium of £5,500 . If the lease had dipped below 80 years, the price would have increased by at least £1,025.
Mr and Mrs. N Bennett owned a recently refurbished apartment in Keston in September 2010. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar homes in Keston with an extended lease were worth £257,800. The mid-range amount of ground rent was £65 billed quarterly. The lease came to a finish on 5 November 2090. Having 65 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 not including expenses.
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 related to 1 flat. The remaining number of years on the lease was 50.57 years.