The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Kingsley may extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Kingsley lease extension. Postponing the costs now simply escalates the amount you will eventually be required to pay to extend the lease.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Lease extensions in Kingsley can be a difficult process. We recommend you get guidance from a conveyancer and valuer 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 a wealth of experience dealing with Kingsley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Liam, started to get close to the 80-year threshold with the lease on his purpose- built flat in Kingsley. Having purchased his property twenty years previously, the length of the lease was of little interest. by good luck, he realised he needed to take action soon on Extending the lease. Liam arranged for a lease extension just in the nick of time in September. Liam and the landlord who owned the flat above ultimately agreed on the final figure of £5,500 . If the lease had dropped to less than 80 years, the sum would have gone up by at least £1,125.
In 2014 we were e-mailed by Ms N Smith who, having took over the lease of a garden flat in Kingsley in August 2010. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparative residencies in Kingsley with a long lease were worth £210,000. The average amount of ground rent was £50 collected quarterly. The lease came to a finish on 2 August 2105. Having 80 years unexpired we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
In 2010 we were contacted by Mr and Mrs. S Hall who, having moved into a studio apartment in Kingsley in March 2004. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical homes in Kingsley with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease finished on 27 January 2094. Having 69 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.