It’s a harsh certainty that a Seven Kings residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Seven Kings property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be due. The majority of flat owners in Seven Kings will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Seven Kings leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the landlord of her leasehold apartment in Seven Kings, Sophie started the lease extension process as the 80 year threshold was swiftly coming. The transaction was finalised in April 2012. The freeholder’s charges were restricted to slightly above six hundred GBP.
In 2014 we were phoned by Ms T Bertrand who, having acquired a ground floor apartment in Seven Kings in September 1996. The question was if we could estimate the price would be to prolong the lease by 90 years. Similar properties in Seven Kings with an extended lease were valued about £166,400. The mid-range ground rent payable was £60 collected yearly. The lease concluded in 2078. Given that there were 54 years outstanding we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of professional charges.
An example of a Lease Extension case for a Seven Kings premises 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 affected 1 flat. The unexpired lease term was 61.36 years.