North Kensington leases on residential properties are gradually losing value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in North Kensington will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some situations you may not be entitled. There are prescribed deadlines and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service gives you better control over the value of your North Kensington leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the freeholder of her ground floor apartment in North Kensington, Amelia commenced the lease extension process as the 80 year mark was swiftly nearing. The transaction was finalised in October 2010. The freeholder’s charges were restricted to about 600 pounds.
In 2011 we were contacted by Dr L Lewis who, having owned a basement flat in North Kensington in April 2007. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical homes in North Kensington with an extended lease were valued about £267,600. The mid-range amount of ground rent was £65 collected annually. The lease ran out on 12 June 2093. Having 67 years outstanding we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of costs.
An example of a Lease Extension decision for a North Kensington flat 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 related to 1 flat. The unexpired term as at the valuation date was 37.79 years.