Kington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Kington tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Kington you would be well advised to investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Kington flat owner with a lease having around 80 years left should take action to ensure that a lease extension is effected without delay
Leasehold premises in Kington with in excess of 100 years outstanding on the lease are often regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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 also be not less than 75 years at the outset of the mortgage. |
| 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 freeholder in Kington,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 Kington valuers.
In the wake of 6 months of lengthy discussions with the freeholder of her ground floor apartment in Kington, Olivia initiated the lease extension process as the 80 year deadline was rapidly approaching. The lease extension was finalised in May 2011. The freeholder’s fees were restricted to less than 500 pounds.
Mr and Mrs. H Leroy was assigned a lease of a first floor flat in Kington in October 1996. The question was if we could approximate the premium would be for a 90 year extension to my lease. Similar flats in Kington with an extended lease were in the region of £198,800. The average ground rent payable was £55 billed per annum. The lease came to a finish in 2081. Having 55 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 plus professional charges.
In 2010 we were approached by Mr and Mrs. D Leroy who, having owned a newly refurbished apartment in Kington in January 2012. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparative homes in Kington with 100 year plus lease were worth £295,000. The average ground rent payable was £45 collected every twelve months. The lease concluded in 2101. Given that there were 75 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.