The re-sale value of a leasehold property in Kingsley depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be concluded in advance of the 80 year threshold. Current legislation enables Kingsley qualifying lessees to an additional term of ninety years on top of the existing term, at a notional rent (no ground rent). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| The Mortgage Works |
Retaining our service gives you increased control over the value of your Kingsley leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Tyler, came precariously close to the 80-year threshold with the lease on his garden flat in Kingsley. In buying his flat 18 years previously, the unexpired term was of little significance. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Tyler was able to extend his lease just ahead of time last May. Tyler and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If the lease had dropped below eighty years, the figure would have escalated by at least £950.
Last year we were e-mailed by Dr Adam Gómez , who purchased a newly refurbished flat in Kingsley in January 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Comparative properties in Kingsley with an extended lease were worth £243,000. The mid-range amount of ground rent was £65 collected per annum. The lease terminated in 2089. Taking into account 63 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of legals.
Mr and Mrs. R Hernández purchased a one bedroom apartment in Kingsley in July 1997. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable properties in Kingsley with 100 year plus lease were valued around £181,600. The average ground rent payable was £55 invoiced every twelve months. The lease lapsed on 1 July 2078. Considering the 52 years left we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of expenses.