There is no doubt about it a leasehold flat or house in South Kensington is a wasting asset as a result of the diminishing lease term. If the lease has, more than 100 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner than later. The majority of flat owners in South Kensington will meet the qualifying criteria; that being said a conveyancing solicitor will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in South Kensington with more than one hundred years outstanding on the lease are often 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 buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in South Kensington,the lease extension experts 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 South Kensington valuers.
Off the back of lengthy discussions with the freeholder of her purpose-built flat in South Kensington, Freya initiated the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The transaction was finalised in September 2014. The landlord’s fees were negotiated to under 700 GBP.
Mr Max Brooks bought a ground floor flat in South Kensington in September 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in South Kensington with a long lease were in the region of £205,000. The average amount of ground rent was £50 collected per annum. The lease came to a finish in 2104. Given that there were 78 years left we estimated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 plus legals.
An example of a Lease Extension matter before the tribunal for a South Kensington residence is Flat 16 21/22 Stanhope Gardens in November 2010. the Leasehold Valuation Tribunal concluded that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993, was £106,975 This case related to 1 flat. The number of years remaining on the existing lease(s) was 51.93 years.