Kingswood leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Kingswood residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Kingswood you must see if your lease has between 70 and ninety years remaining. There are good reasons why a Kingswood leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Kingswood,the lease extension solicitors 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 Kingswood valuers.
Following unsuccessful discussions with the landlord of her garden apartment in Kingswood, Isabel initiated the lease extension process as the eighty year mark was swiftly advancing. The legal work was finalised in September 2015. The freeholder’s costs were negotiated to a tad over 450 GBP.
Mrs H Green acquired a recently refurbished apartment in Kingswood in January 1999. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Similar flats in Kingswood with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 invoiced annually. The lease concluded in 2097. Taking into account 71 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
In 2011 we were approached by Mrs V Bonnet who, having was assigned a lease of a basement apartment in Kingswood in October 2010. The question was if we could approximate the price would likely be to prolong the lease by ninety years. Similar premises in Kingswood with an extended lease were in the region of £225,800. The average amount of ground rent was £60 billed per annum. The lease ran out on 26 April 2086. Considering the 60 years outstanding we calculated the premium to the landlord to extend the lease to be between £25,700 and £29,600 plus expenses.