With a residential leasehold property in Kingston Park, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than 80 years left. Leasehold owners in Kingston Park with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once the lease term has fewer than eighty years remaining, under the current legislation the freeholder is entitled to calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancers that we work with procure 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.
Jackson owned a studio flat in Kingston Park on the market with a lease of just over 61 years outstanding. Jackson informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Jackson to invoke his statutory right. Jackson obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2012 we were phoned by Mrs E Walker who, having purchased a recently refurbished flat in Kingston Park in March 2007. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable properties in Kingston Park with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease terminated on 25 April 2099. Given that there were 73 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Mrs B Jackson took over the lease of a purpose-built apartment in Kingston Park in October 2007. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Kingston Park with an extended lease were valued about £235,600. The average amount of ground rent was £60 invoiced yearly. The lease came to a finish in 2088. Given that there were 62 years unexpired we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including fees.