The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Kendal may extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Kendal lease extension. Postponing the costs now simply escalates the amount you will eventually be required to pay to extend the lease.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Kendal,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kendal valuers.
Jason was the the leasehold proprietor of a studio apartment in Kendal being sold with a lease of just over 72 years outstanding. Jason on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Jason to invoke his statutory right. Jason procured expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2012 we were e-mailed by Mr Samuel Gray who, having took over the lease of a one bedroom apartment in Kendal in April 1995. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparable premises in Kendal with a long lease were worth £223,400. The mid-range amount of ground rent was £60 collected quarterly. The lease elapsed on 3 May 2085. Considering the 59 years remaining we approximated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 not including expenses.
In 2011 we were phoned by Mr and Mrs. C Flores who, having purchased a one bedroom apartment in Kendal in February 2006. The question was if we could approximate the premium would be for a ninety year lease extension. Similar premises in Kendal with a long lease were in the region of £205,000. The average amount of ground rent was £50 billed annually. The lease came to a finish in 2105. Taking into account 79 years remaining we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.