Unfortunately that a Kingston upon Thames residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Kingston upon Thames property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining drops below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Kingston upon Thames will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Kingston upon Thames with over 100 years left on the lease are often 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 buying the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Irrespective of whether you are a tenant or a landlord in Kingston upon Thames,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kingston upon Thames valuers.
In recent months Max, came precariously close to the 80-year threshold with the lease on his garden apartment in Kingston upon Thames. In buying his flat two decades ago, the unexpired term was of little interest. by good luck, he realised he needed to take steps soon on Extending the lease. Max was able to extend his lease at the eleventh hour last May. Max and the freeholder via the management company subsequently settled on an amount of £5,000 . If he not met the deadline, the figure would have become more costly by a minimum £900.
Last May we were called by Mr and Mrs. I Lefebvre , who moved into a basement flat in Kingston upon Thames in May 2004. The question was if we could estimate the premium would be for a ninety year lease extension. Similar premises in Kingston upon Thames with a long lease were in the region of £254,200. The average ground rent payable was £60 billed quarterly. The lease expired on 18 January 2077. Having 51 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 not including expenses.
An example of a Lease Extension decision 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.