Kingsnorth leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be payable. Flat owners in Kingsnorth will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and procedures to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Kingsnorth,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kingsnorth valuers.
Last year Seth, started to get close to the 80-year threshold with the lease on his basement apartment in Kingsnorth. Having purchased his home two decades ago, the length of the lease was of no significance. Thankfully, he noticed he would soon be paying way over the odds for Extending the lease. Seth arranged for a lease extension just in the nick of time in June. Seth and the landlord subsequently settled on a premium of £5,000 . If the lease had fallen below eighty years, the sum would have gone up by at least £850.
Dr Luca Cook owned a purpose-built flat in Kingsnorth in May 2001. The question was if we could approximate the price would be to prolong the lease by an additional years. Similar properties in Kingsnorth with 100 year plus lease were valued around £168,800. The average ground rent payable was £60 invoiced quarterly. The lease expired on 7 November 2080. Having 55 years as a residual term we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus legals.
Dr Eliot Green acquired a ground floor apartment in Kingsnorth in September 1997. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Comparable properties in Kingsnorth with a long lease were worth £235,200. The mid-range amount of ground rent was £45 billed per annum. The lease expiry date was on 18 June 2091. Having 66 years remaining we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.