When it comes to domestic leasehold premises in Kington, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years left. Leasehold owners in Kington with a lease drawing near to 81 years left should seriously consider extending it without delay. Once the lease term has less than 80 years outstanding, under the current statute the landlord can calculate and charge a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Kington with more than one hundred years outstanding on the lease are sometimes 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 to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Kington,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kington valuers.
Last year Nathan, started to get near to the 80-year mark with the lease on his leasehold flat in Kington. In buying his property 18 years previously, the length of the lease was of little importance. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Nathan was able to extend his lease just in the nick of time in April. Nathan and the landlord in the end agreed on an amount of £5,000 . If the lease had dropped to less than 80 years, the amount would have become more costly by at least £1,050.
Last Christmas we were called by Ms D Murphy , who moved into a recently refurbished apartment in Kington in January 1996. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar flats in Kington with an extended lease were valued around £166,800. The average amount of ground rent was £50 collected monthly. The lease ended in 2075. Given that there were 50 years left we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus fees.
Mrs S Bell purchased a basement flat in Kington in November 2000. The question was if we could approximate the price would be for a 90 year lease extension. Comparable residencies in Kington with an extended lease were valued about £280,000. The average ground rent payable was £45 collected per annum. The lease ran out in 2095. Taking into account 70 years left we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.