Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Kendal. Inevitably, the length of lease remaining shortens over time. This is often ignored and only becomes a problem when the residence needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Kendal have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before putting off your Kendal lease extension. Holding off the cost now only increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Kendal can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor 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 dealing with Kendal lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Matthew owned a studio apartment in Kendal on the market with a lease of just over 61 years left. Matthew on an informal basis approached his freeholder being a well known Bristol-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 initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Matthew to exercise his statutory right. Matthew procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Summer we were phoned by Mr and Mrs. P Hernández , who owned a newly refurbished apartment in Kendal in October 2007. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable residencies in Kendal with 100 year plus lease were worth £189,000. The mid-range amount of ground rent was £55 collected annually. The lease ran out on 15 September 2079. Considering the 53 years left we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including fees.
Dr T Murphy purchased a basement flat in Kendal in April 2008. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable residencies in Kendal with an extended lease were valued around £290,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease terminated on 16 April 2099. Having 73 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.