The re-sale value of a leasehold property in Kingsnorth is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed in advance of the eighty year mark. Current legislation enables Kingsnorth qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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. |
| 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 |
Retaining our service gives you enhanced control over the value of your Kingsnorth leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Dylan, started to get near to the 80-year threshold with the lease on his garden apartment in Kingsnorth. In buying his flat two decades ago, the unexpired term was of no bearing. by good luck, he realised he needed to take action soon on a lease extension. Dylan extended the lease just under the wire last April. Dylan and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If he had missed the deadline, the premium would have become more costly by at least £1,100.
Dr Oscar Bailey bought a basement apartment in Kingsnorth in February 1998. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Comparable flats in Kingsnorth with a long lease were valued about £264,000. The mid-range amount of ground rent was £60 billed yearly. The lease elapsed in 2079. Considering the 53 years remaining we calculated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 exclusive of expenses.
Last Winter we were e-mailed by Ms Isabella Howard , who acquired a garden apartment in Kingsnorth in August 2002. The question was if we could approximate the price would be to prolong the lease by an additional years. Comparative properties in Kingsnorth with 100 year plus lease were valued around £220,400. The average ground rent payable was £45 invoiced annually. The lease lapsed in 2090. Taking into account 64 years remaining we calculated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus fees.