Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Kingston upon Thames. Clearly, the term of lease remaining shortens over time. This may pass by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Kingston upon Thames have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. You should give due consideration before delaying your Kingston upon Thames lease extension. Holding off the cost now only increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent 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 decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Kingston upon Thames can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Kingston upon Thames lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Ryan, started to get close to the eighty-year threshold with the lease on his leasehold flat in Kingston upon Thames. Having purchased his home two decades ago, the lease term was of little significance. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Ryan arranged for a lease extension just in the nick of time in March. Ryan and the freeholder via the management company in the end settled on a premium of £5,500 . If the lease had slipped lower than eighty years, the sum would have become more costly by at least £950.
Last Spring we were approach by Mrs N Lee , who acquired a purpose-built apartment in Kingston upon Thames in August 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Identical flats in Kingston upon Thames with an extended lease were worth £173,800. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease concluded in 2081. Taking into account 55 years left we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including costs.
An example of a Lease Extension matter before the tribunal for a Kingston upon Thames premises is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case was in relation to 1 flat.