It’s an underpublicised truth that a Kingsley residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Kingsley property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be payable. Most flat owners in Kingsley will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Kingsley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kingsley valuers.
Zachary owned a conversion flat in Kingsley being sold with a lease of just over 59 years unexpired. Zachary on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Zachary to invoke his statutory right. Zachary obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2009 we were approached by Mr L Ramírez who, having purchased a first floor flat in Kingsley in April 1998. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable homes in Kingsley with a long lease were valued around £280,000. The average amount of ground rent was £45 collected yearly. The lease ran out in 2096. Taking into account 70 years as a residual term we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
In 2013 we were called by Dr Eleanor Morris who, having acquired a one bedroom apartment in Kingsley in July 2001. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar premises in Kingsley with an extended lease were in the region of £223,400. The mid-range ground rent payable was £60 billed monthly. The lease ran out in 2085. Taking into account 59 years outstanding we calculated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 plus expenses.