It’s an underpublicised certainty that a Kings Lynn residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Kings Lynn property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Kings Lynn will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately 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 decades to come.
| 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. |
| 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. |
Lease extensions in Kings Lynn can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 Kings Lynn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of protracted negotiations with the landlord of her leasehold apartment in Kings Lynn, Georgia started the lease extension process as the 80 year threshold was quickly advancing. The transaction completed in July 2010. The landlord’s costs were kept to an absolute minimum.
Last Spring we were e-mailed by Mr and Mrs. U Kelly , who moved into a newly refurbished apartment in Kings Lynn in October 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Kings Lynn with an extended lease were in the region of £168,800. The average amount of ground rent was £60 invoiced yearly. The lease finished on 23 November 2080. Given that there were 55 years remaining we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.
Last year we were contacted by Mr V Mercier , who moved into a newly refurbished flat in Kings Lynn in October 1998. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical flats in Kings Lynn with 100 year plus lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced quarterly. The lease expired in 2091. Given that there were 66 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.