The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Kendal have the right to extend the lease for a further ninety years in accordance with statute. Do think carefully before delaying your Kendal lease extension. Postponing the costs today simply escalates the premium you will ultimately be required to pay to extend the lease.
Leasehold residencies in Kendal with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| 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 obtain guidance from a conveyancing solicitor 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 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.
In recent months Aaron, started to get close to the 80-year threshold with the lease on his first floor flat in Kendal. Having bought his property two decades ago, the length of the lease was of minimal importance. Luckily, he became aware that he needed to take steps soon on Extending the lease. Aaron arranged for a lease extension at the eleventh hour in September. Aaron and the landlord in the end settled on the final figure of £5,500 . If he had missed the deadline, the sum would have escalated by at least £850.
Last Autumn we were e-mailed by Mrs Daisy Thomas , who took over the lease of a first floor apartment in Kendal in February 2001. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Identical premises in Kendal with an extended lease were valued around £191,400. The mid-range amount of ground rent was £55 billed per annum. The lease concluded in 2079. Taking into account 54 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of costs.
Mrs Tia Walker completed a one bedroom apartment in Kendal in July 2012. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Kendal with a long lease were in the region of £295,000. The average ground rent payable was £45 collected annually. The lease finished on 10 April 2099. Given that there were 74 years remaining we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.