The market value of Kingston Park leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than eighty years
Leasehold properties in Kingston Park with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Kingston Park 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.
Harrison owned a high value apartment in Kingston Park being sold with a lease of a few days over sixty years outstanding. Harrison on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert advice and secured satisfactory resolution informally and sell the property.
Mr and Mrs. Y Mitchell moved into a one bedroom flat in Kingston Park in March 2005. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparable premises in Kingston Park with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease concluded in 2105. Given that there were 80 years left we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.
Mrs Georgina Murphy purchased a one bedroom flat in Kingston Park in June 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Comparable properties in Kingston Park with a long lease were valued around £275,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease came to a finish in 2094. Taking into account 69 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.