With a long leasehold premises in Seven Kings, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are less than eighty years left. Anyone in Seven Kings with a lease drawing near to 81 years left should seriously think of extending it without delay. When a lease has under 80 years remaining, under the current statute the freeholder is entitled to calculate and charge a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
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 ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Seven Kings,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seven Kings valuers.
After protracted negotiations with the freeholder of her purpose-built apartment in Seven Kings, Rebecca initiated the lease extension process as the eighty year deadline was fast coming. The transaction was concluded in May 2013. The landlord’s costs were kept to an absolute minimum.
Last Spring we were contacted by Mr and Mrs. T Evans , who took over the lease of a garden flat in Seven Kings in April 1998. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar homes in Seven Kings with a long lease were valued around £208,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease lapsed on 15 August 2086. Given that there were 61 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including costs.
An example of a Lease Extension case for a Seven Kings property 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.