Kingston upon Thames Lease Extension - Free Consultation

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Why you should commence your Kingston upon Thames lease extension

Top reasons for lease extension now:

A Kingston upon Thames lease depreciates with the years remaining on the lease.

The market value of Kingston upon Thames leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than 80 years

Kingston upon Thames property with a lease extension is almost the same value as a freehold

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 ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Lending institutions will not lend on a short lease

Mortgage Lenders vary in their lending criteria. Some draw the line at seventy five years left on the lease; others may be content with anything with more than seventy years. Below 60 years, it may be challenging to obtain a mortgage at all.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
National Westminster Bank Mortgage term plus 30 years.
Santander You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
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.

Why use us for your lease extension in Kingston upon Thames?

Engaging our service will provide you increased control over the value of your Kingston upon Thames leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Kingston upon Thames Lease Extension Example Cases:

Noah, Kingston upon Thames, South West London,

Noah was the the leasehold proprietor of a high value apartment in Kingston upon Thames being marketed with a lease of a little over 72 years left. Noah informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Noah to invoke his statutory right. Noah obtained expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.

Kingston upon Thames case:

In 2012 we were called by Mr and Mrs. D Wright who, having owned a one bedroom flat in Kingston upon Thames in March 2008. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative homes in Kingston upon Thames with 100 year plus lease were in the region of £246,800. The mid-range amount of ground rent was £60 billed per annum. The lease ran out on 19 October 2073. Having 50 years as a residual term we approximated the premium to the landlord for the lease extension to be between £44,700 and £51,600 not including fees.

Decision in Kingston upon Thames

An example of a Lease Extension matter before the tribunal 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.