The re-sale value of a leasehold property in Kingston upon Thames is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the lease extension process when the lease still has 82 years to run so that formalities can be finalised in advance of the eighty year threshold. Leasehold Reform legislation enables Kingston upon Thames qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Kingston upon Thames leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the landlord of her one bedroom flat in Kingston upon Thames, Sophia initiated the lease extension process just as her lease was nearing the crucial eighty-year mark. The transaction was finalised in April 2009. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were contacted by Mr and Mrs. G David who, having was assigned a lease of a recently refurbished apartment in Kingston upon Thames in June 2004. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparable homes in Kingston upon Thames with a long lease were valued around £166,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease came to a finish on 23 June 2080. Taking into account 54 years remaining we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including costs.
An example of a Lease Extension decision for a Kingston upon Thames flat 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.