Unfortunately 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 reduction being disguised by increases in the Kendal property market.Once your lease nears 85ish years, you should start considering a lease extension. If lease term slips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Kendal will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Kendal with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Irrespective of whether you are a tenant or a landlord in Kendal,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kendal valuers.
Hunter was the the leasehold owner of a 2 bedroom apartment in Kendal on the market with a lease of just over fifty eight years remaining. Hunter on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Hunter to invoke his statutory right. Hunter procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2012 we were approached by Dr G Lee who, having took over the lease of a one bedroom flat in Kendal in March 2012. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical properties in Kendal with a long lease were in the region of £233,200. The average ground rent payable was £60 billed quarterly. The lease expiry date was in 2087. Considering the 61 years remaining we approximated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 not including fees.
Last Summer we were approach by Mr and Mrs. H Baker , who completed a one bedroom flat in Kendal in September 2001. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar properties in Kendal with an extended lease were in the region of £171,800. The mid-range ground rent payable was £55 invoiced quarterly. The lease lapsed in 2076. Taking into account 50 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including legals.