Kingsdown leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Kingsdown will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold premises in Kingsdown with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Kingsdown leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Aaron, started to get near to the 80-year threshold with the lease on his basement apartment in Kingsdown. Having purchased his property two decades ago, the unexpired term was of minimal bearing. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. Aaron was able to extend his lease just in the nick of time last January. Aaron and the freeholder ultimately agreed on a premium of £6,000 . If the lease had dipped below 80 years, the sum would have escalated by a minimum £900.
Mr and Mrs. Y Dupont purchased a studio apartment in Kingsdown in November 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparative homes in Kingsdown with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 collected per annum. The lease terminated on 12 February 2079. Given that there were 54 years outstanding we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 plus legals.
Last Christmas we were e-mailed by Mr and Mrs. F Martinez , who was assigned a lease of a basement apartment in Kingsdown in March 2001. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Comparable premises in Kingsdown with a long lease were valued about £227,800. The average ground rent payable was £45 collected every twelve months. The lease elapsed in 2090. Having 65 years unexpired we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.