The closer a domestic lease in Kingsley nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Kingsley will qualify for this right; however a conveyancer will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage 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. |
| 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. |
The conveyancing solicitors that we work with procure Kingsley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Riley owned a studio flat in Kingsley being sold with a lease of a little over 59 years remaining. Riley on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Riley to exercise his statutory right. Riley procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Last March we were called by Mr and Mrs. K Garcia , who moved into a first floor apartment in Kingsley in November 2004. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical properties in Kingsley with a long lease were worth £216,000. The average amount of ground rent was £60 collected quarterly. The lease finished in 2084. Considering the 58 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of costs.
Last Summer we were called by Dr P Girard , who completed a one bedroom flat in Kingsley in September 2003. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Kingsley with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected quarterly. The lease lapsed on 8 April 2104. Taking into account 78 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.