The only way is down when it comes to Kingstanding lease terms. Kingstanding leaseholds that have a remaining term lower than eighty years will de-escalate in market price at a rapid rate, and the cost of extending your lease will rise.
Leasehold properties in Kingstanding with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Kingstanding lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Leo, started to get close to the eighty-year mark with the lease on his purpose- built flat in Kingstanding. In buying his flat twenty years previously, the unexpired term was of little relevance. Thankfully, he realised he needed to take steps soon on Extending the lease. Leo was able to extend his lease just ahead of time in August. Leo and the freeholder via the managing agents subsequently settled on sum of £5,500 . If he failed to meet the deadline, the premium would have gone up by at least £900.
In 2012 we were contacted by Mr and Mrs. J Roux who, having was assigned a lease of a one bedroom flat in Kingstanding in October 2001. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative properties in Kingstanding with a long lease were in the region of £275,000. The mid-range ground rent payable was £45 billed per annum. The lease ended in 2095. Having 69 years as a residual term we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.
In 2009 we were called by Mr U Turner who, having moved into a one bedroom flat in Kingstanding in September 2002. The question was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical flats in Kingstanding with a long lease were valued about £216,000. The mid-range amount of ground rent was £60 billed quarterly. The lease came to a finish on 16 August 2084. Having 58 years outstanding we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of costs.