As the length of the unexpired term of a Seven Kings domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, more than 99 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years remaining 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 extend the lease without delay. Many flat owners in Seven Kings will meet the qualifying criteria; nevertheless a lawyer will be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Seven Kings with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Seven Kings,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seven Kings valuers.
In the wake of eight months of protracted discussions with the landlord of her garden apartment in Seven Kings, Amber initiated the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension was concluded in June 2008. The freeholder’s charges were restricted to slightly above 700 GBP.
Last Autumn we were called by Ms Laura Michel , who moved into a garden apartment in Seven Kings in November 2012. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparable residencies in Seven Kings with 100 year plus lease were valued about £191,000. The average amount of ground rent was £65 invoiced yearly. The lease ran out in 2084. Having 58 years left we calculated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 not including expenses.
An example of a Lease Extension matter before the tribunal for a Seven Kings residence is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case was in relation to 1 flat. The unexpired residue of the current lease was 61.36 years.