The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in King's Cross may extend the lease for an additional ninety years under legislation. Do think carefully before delaying your King's Cross lease extension. Shelving that expense now simply escalates the price you will eventually have to pay to extend the lease.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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 freeholder in King's Cross,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with King's Cross valuers.
Luke was the the leasehold owner of a 2 bedroom apartment in King's Cross being marketed with a lease of fraction over 59 years outstanding. Luke on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Luke to exercise his statutory right. Luke obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Mrs Aimee Parker moved into a basement apartment in King's Cross in March 2001. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Identical flats in King's Cross with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 billed annually. The lease finished on 5 July 2093. Having 68 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension case for a King's Cross property is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case affected 1 flat. The unexpired residue of the current lease was 66.8 years.