With a domestic leasehold property in Kingston, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years remaining. Leasehold owners in Kingston with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has fewer than 80 years outstanding, under the relevant statute the landlord can calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Kingston with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Kingston,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kingston valuers.
Last year Noah, came dangerously close to the eighty-year threshold with the lease on his two bedroom flat in Kingston. In buying his property two decades ago, the length of the lease was of little importance. Fortunately, he noticed he needed to take steps soon on Extending the lease. Noah was able to extend his lease just in the nick of time last January. Noah and the freeholder ultimately settled on a premium of £6,000 . If the lease had dipped to less than 80 years, the amount would have escalated by at least £950.
In 2014 we were approached by Mr and Mrs. B Wilson who, having moved into a purpose-built flat in Kingston in September 2000. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar homes in Kingston with a long lease were worth £260,000. The mid-range ground rent payable was £50 billed every twelve months. The lease terminated in 2098. Taking into account 72 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Mrs I David moved into a one bedroom flat in Kingston in July 2012. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparable properties in Kingston with an extended lease were valued around £256,600. The mid-range ground rent payable was £60 invoiced annually. The lease concluded in 2078. Taking into account 52 years outstanding we estimated the premium to the landlord to extend the lease to be between £39,000 and £45,000 exclusive of professional charges.