North Kensington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in North Kensington enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in North Kensington you would be well advised to see if your lease has between seventy and ninety years remaining. There are good reasons why a North Kensington leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold properties in North Kensington with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in North Kensington,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with North Kensington valuers.
Following lengthy correspondence with the landlord of her basement flat in North Kensington, Alexandra commenced the lease extension process as the eighty year deadline was fast advancing. The lease extension was finalised in November 2005. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. F Cooper took over the lease of a one bedroom flat in North Kensington in October 2011. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical properties in North Kensington with a long lease were valued around £206,200. The average amount of ground rent was £55 collected annually. The lease concluded in 2082. Considering the 56 years remaining we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including professional charges.
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 was in relation to 1 flat. The unexpired term was 37.79 years.