South Kensington leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease drops below eighty years - otherwise a higher premium will be due. Leasehold owners in South Kensington will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in South Kensington can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring South Kensington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dexter owned a conversion flat in South Kensington on the market with a lease of a few days over fifty eight years outstanding. Dexter on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Dexter to invoke his statutory right. Dexter procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2013 we were phoned by Ms V Mason who, having purchased a garden flat in South Kensington in June 2009. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparable residencies in South Kensington with a long lease were in the region of £196,400. The average ground rent payable was £55 collected annually. The lease ran out in 2080. Having 54 years remaining we estimated the compensation to the landlord for the lease extension to be between £35,200 and £40,600 plus legals.
An example of a Lease Extension case for a South Kensington property 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 affected 1 flat. The unexpired term as at the valuation date was 51.93 years.