There is no doubt about it a leasehold property in North Kensington is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 125 years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. Most flat owners in North Kensington will meet the qualifying criteria; however a lawyer should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with procure North Kensington 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.
Trailing unsuccessful negotiations with the landlord of her garden apartment in North Kensington, Elizabeth commenced the lease extension process just as the lease was approaching the all-important 80-year deadline. The lease extension was finalised in September 2014. The landlord’s costs were negotiated to below 650 GBP.
Last Spring we were called by Mr and Mrs. A Davies , who owned a studio flat in North Kensington in August 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable premises in North Kensington with an extended lease were valued about £223,400. The average ground rent payable was £60 collected monthly. The lease concluded on 1 October 2085. Given that there were 59 years left we estimated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of legals.
An example of a Lease Extension case for a North Kensington premises is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case affected 1 flat. The unexpired residue of the current lease was 37.79 years.