Kingswood leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Kingswood will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and steps to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Kingswood with over one hundred years remaining 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Kingswood,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kingswood valuers.
Half a year ago Jude, started to get near to the eighty-year mark with the lease on his ground floor apartment in Kingswood. In buying his flat 19 years ago, the length of the lease was of no importance. by good luck, he became aware that he would soon be paying an escalated premium for a lease extension. Jude was able to extend his lease at the eleventh hour in July. Jude and the freeholder via the managing agents eventually settled on the final figure of £5,500 . If the lease had gone to less than 80 years, the amount would have escalated by a minimum £1,000.
In 2013 we were contacted by Mr and Mrs. R Bailey who, having bought a garden flat in Kingswood in August 2008. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical residencies in Kingswood with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 collected per annum. The lease came to a finish in 2090. Given that there were 64 years left we estimated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus fees.
Last year we were e-mailed by Dr Jack Patel , who moved into a garden flat in Kingswood in July 2006. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparative homes in Kingswood with an extended lease were valued around £184,000. The average amount of ground rent was £55 invoiced every twelve months. The lease ran out in 2079. Given that there were 53 years left we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of fees.