It’s an underpublicised truth that a Kendal residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Kendal property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining dips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Kendal will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. 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 conveyancer throughout the formalities.
Leasehold properties in Kendal with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 Kendal can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in this area.
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 Kendal lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the freeholder of her two bedroom apartment in Kendal, Shannon started the lease extension process just as her lease was approaching the crucial eighty-year threshold. The lease extension completed in November 2012. The freeholder’s fees were restricted to less than 500 pounds.
Last month we were contacted by Dr B Reed , who bought a first floor apartment in Kendal in February 2006. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Identical homes in Kendal with an extended lease were in the region of £275,000. The mid-range ground rent payable was £65 collected per annum. The lease concluded in 2093. Considering the 68 years left we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.
Mrs C Lee moved into a garden apartment in Kendal in October 2002. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Similar flats in Kendal with an extended lease were valued about £208,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease ended on 8 November 2082. Considering the 57 years outstanding we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of fees.