Why you should start your Kendal lease extension

Why you should commence your Kendal lease extension today:

A Kendal lease depreciates with the years remaining on the lease.

For anyone whose Kendal home is held on a long lease, the message is clear – if nothing is done, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.

Kendal property with a lease extension is almost the same value as a freehold

Leasehold properties in Kendal with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Lenders may decide not to lend on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by lenders has increased. In the past banks were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Kendal lease extensions?

Lease extensions in Kendal can be a difficult process. We recommend you secure guidance from a lawyer 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 a wealth of experience 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.

Kendal Lease Extension Example Cases:

Mia, Kendal, Cumbria,

After protracted correspondence with the freeholder of her studio flat in Kendal, Mia commenced the lease extension process as the 80 year mark was fast approaching. The legal work completed in May 2005. The freeholder’s charges were kept to an absolute minimum.

Kendal case:

Dr Courtney Miller bought a one bedroom apartment in Kendal in January 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Similar premises in Kendal with a long lease were valued around £300,000. The average ground rent payable was £50 collected quarterly. The lease expired on 20 July 2102. Having 76 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.

Kendal case:

Last Christmas we were contacted by Mr Oliver Martínez , who completed a one bedroom flat in Kendal in May 1998. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Similar properties in Kendal with 100 year plus lease were worth £257,800. The average ground rent payable was £65 invoiced quarterly. The lease ended in 2091. Given that there were 65 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of fees.