Kingston Park leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Kingston Park tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Kingston Park you would be well advised to see if your lease has between seventy and ninety years left. There are good reasons why a Kingston Park leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
Kian was the the leasehold proprietor of a conversion apartment in Kingston Park being sold with a lease of just over 72 years outstanding. Kian informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Kian to invoke his statutory right. Kian obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last September we were contacted by Mr Michael Turner , who took over the lease of a first floor flat in Kingston Park in March 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Kingston Park with 100 year plus lease were valued around £260,200. The mid-range amount of ground rent was £65 collected monthly. The lease terminated in 2092. Taking into account 66 years unexpired we estimated the premium to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of fees.
Last Winter we were approach by Mr and Mrs. P Parker , who moved into a one bedroom apartment in Kingston Park in February 2003. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Kingston Park with 100 year plus lease were in the region of £198,800. The average ground rent payable was £55 invoiced yearly. The lease terminated in 2081. Taking into account 55 years left we calculated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 not including legals.