Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Kingstanding. Clearly, the length of lease remaining shortens over time. This may pass by relatively unnoticed when the residence has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Kingstanding have the legal entitlement to extend the lease for an additional ninety years under statute. Do give due deliberation before putting off your Kingstanding lease extension. Holding off the cost now likely increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with in excess of one hundred years remaining 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 decades to come.
| Lender | Requirement |
|---|---|
| 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 also be not less than 75 years 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Kingstanding can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Kingstanding lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ben owned a high value flat in Kingstanding being sold with a lease of fraction over 59 years left. Ben informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ben to invoke his statutory right. Ben obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
In 2012 we were e-mailed by Dr U Evans who, having acquired a one bedroom flat in Kingstanding in October 2003. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative premises in Kingstanding with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 collected yearly. The lease elapsed on 22 April 2077. Considering the 52 years remaining we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of legals.
In 2013 we were e-mailed by Mrs U Rogers who, having took over the lease of a newly refurbished apartment in Kingstanding in November 2010. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical residencies in Kingstanding with a long lease were worth £285,000. The mid-range ground rent payable was £45 billed annually. The lease elapsed in 2097. Considering the 72 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.