With a residential leasehold premises in King's Cross, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are less than eighty years remaining. Leasehold owners in King's Cross with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has below eighty years left, under the relevant legislation the freeholder is entitled to calculate and charge a larger premium, based on a technical computation, known as “marriage value” which is due.
Leasehold properties in King's Cross with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland |
Lease extensions in King's Cross can be a difficult process. We recommend you obtain professional help 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 in-depth market knowledge dealing with King's Cross lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Hugo was the the leasehold owner of a studio flat in King's Cross being marketed with a lease of fraction over fifty eight years left. Hugo informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking 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. No ground rent would be due on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Mr H Rodríguez bought a studio flat in King's Cross in November 2005. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in King's Cross with 100 year plus lease were in the region of £191,000. The average amount of ground rent was £65 collected yearly. The lease expired on 13 April 2084. Considering the 58 years as a residual term we calculated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus legals.
An example of a Lease Extension case for a King's Cross residence 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 term was 66.8 years.