With a residential leasehold premises in Kingsland, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than 80 years left. Anyone in Kingsland with a lease approaching 81 years left should seriously think of extending it without delay. Once the lease term has under eighty years remaining, under the current statute the freeholder can calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Kingsland with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service will provide you increased control over the value of your Kingsland leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Riley, started to get near to the 80-year threshold with the lease on his ground floor apartment in Kingsland. In buying his home 19 years ago, the length of the lease was of little bearing. As luck would have it, he recognised he would soon be paying an escalated premium for a lease extension. Riley was able to extend his lease just in the nick of time in May. Riley and the freeholder via the management company subsequently settled on the final figure of £6,000 . If he failed to meet the deadline, the premium would have gone up by a minimum £1,000.
Last Winter we were approach by Mrs N André , who acquired a one bedroom apartment in Kingsland in November 1996. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Identical properties in Kingsland with a long lease were valued about £205,000. The average ground rent payable was £50 invoiced per annum. The lease ran out in 2104. Considering the 79 years remaining we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Kingsland flat is 5C Stoke Newington Road in April 2010. the Tribunal therefore concludes that the premium to be paid for the extended lease is £700.00 This case was in relation to 1 flat. The unexpired term was 80.5 years.