Kington leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Kington tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Kington you should check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Kington can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Kington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful negotiations with the freeholder of her two bedroom apartment in Kington, Daisy started the lease extension process as the eighty year threshold was rapidly coming. The legal work completed in October 2013. The landlord’s charges were negotiated to a tad over 450 GBP.
Last month we were phoned by Ms M Young , who owned a newly refurbished apartment in Kington in September 2005. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar flats in Kington with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 billed monthly. The lease termination date was in 2105. Considering the 79 years remaining we approximated the premium to the landlord for the lease extension to be within £7,600 and £8,800 not including legals.
Last March we were phoned by Mr and Mrs. H González , who took over the lease of a purpose-built apartment in Kington in May 2008. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Comparative residencies in Kington with an extended lease were valued around £270,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease ended in 2094. Considering the 68 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.