As the the remaining lease term of a Kington domestic lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Kington will qualify for this right; however a conveyancing solicitor can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| National Westminster Bank | |
| TSB | |
| Yorkshire Building Society |
The conveyancers that we work with handle Kington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Arthur was the the leasehold owner of a conversion apartment in Kington being marketed with a lease of a few days over sixty years remaining. Arthur on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Arthur to exercise his statutory right. Arthur procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last Spring we were approach by Ms Molly Lefebvre , who acquired a first floor apartment in Kington in September 2012. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Similar premises in Kington with 100 year plus lease were valued about £285,000. The mid-range ground rent payable was £45 collected monthly. The lease ended in 2098. Having 72 years as a residual term we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.
Mr Lewis Harris completed a one bedroom flat in Kington in February 2003. The question was if we could approximate the price would likely be to extend the lease by ninety years. Comparative premises in Kington with an extended lease were in the region of £233,200. The average amount of ground rent was £60 invoiced per annum. The lease came to a finish on 16 August 2087. Considering the 61 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 not including costs.