Kingstanding leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Kingstanding will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and formalities to follow 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 in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
Retaining our service gives you better control over the value of your Kingstanding leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
John owned a 2 bedroom apartment in Kingstanding on the market with a lease of fraction over 59 years remaining. John informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were John to invoke his statutory right. John procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2013 we were called by Ms Maisie Walker who, having took over the lease of a garden flat in Kingstanding in January 2008. We are asked if we could estimate the premium could be to extend the lease by 90 years. Identical premises in Kingstanding with 100 year plus lease were valued about £250,400. The mid-range ground rent payable was £65 collected yearly. The lease finished in 2090. Considering the 64 years remaining we calculated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 plus expenses.
Mr and Mrs. F Gunderson moved into a basement apartment in Kingstanding in August 2008. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparative properties in Kingstanding with 100 year plus lease were in the region of £189,000. The mid-range amount of ground rent was £55 collected per annum. The lease ran out in 2079. Given that there were 53 years left we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus costs.