Kington leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Kington will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not qualify. There are also strict deadlines and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Kington with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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. |
Using our service will provide you enhanced control over the value of your Kington leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Gabriel owned a conversion flat in Kington being sold with a lease of just over 72 years remaining. Gabriel on an informal basis spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last month we were approach by Mrs Lily Norbert , who owned a purpose-built flat in Kington in October 1999. The question was if we could approximate the premium could be for a 90 year lease extension. Similar premises in Kington with an extended lease were worth £201,200. The mid-range amount of ground rent was £55 collected per annum. The lease termination date was on 22 February 2082. Having 56 years left we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus legals.
Mr O Flores owned a recently refurbished apartment in Kington in October 2000. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparative residencies in Kington with an extended lease were valued about £300,000. The average amount of ground rent was £50 collected every twelve months. The lease ran out in 2102. Given that there were 76 years remaining we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.