There is no doubt about it a leasehold flat or house in Kington is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. 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; nevertheless a lawyer will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Kington with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Kington,the lease extension experts 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.
Off the back of protracted discussions with the landlord of her leasehold flat in Kington, Morgan initiated the lease extension process just as the lease was nearing the crucial 80-year mark. The legal work was concluded in May 2008. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were approached by Mr Jayden Nguyen who, having moved into a purpose-built apartment in Kington in October 1999. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical flats in Kington with 100 year plus lease were valued about £235,600. The mid-range ground rent payable was £60 billed per annum. The lease finished in 2087. Given that there were 62 years unexpired we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including costs.
Last month we were contacted by Mrs R Morgan , who owned a basement flat in Kington in November 1998. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Identical properties in Kington with 100 year plus lease were worth £174,200. The mid-range ground rent payable was £55 billed yearly. The lease expired in 2076. Considering the 51 years outstanding we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus fees.