Unfortunately that a Kendal residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Kendal property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Kendal will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold properties in Kendal with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Chelsea Building Society | |
| Halifax | |
| The Mortgage Works |
Regardless of whether you are a tenant or a freeholder in Kendal,the lease extension experts that we work with will always be prepared 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.
Last year Hugo, came perilously close to the eighty-year threshold with the lease on his ground floor flat in Kendal. In buying his home twenty years ago, the length of the lease was of little importance. Thankfully, he realised he would imminently be paying an escalated premium for a lease extension. Hugo extended the lease just under the wire in January. Hugo and the landlord ultimately agreed on a premium of £6,000 . If the lease had descended to less than 80 years, the premium would have increased by a minimum £875.
In 2014 we were e-mailed by Mr and Mrs. N Mitchell who, having was assigned a lease of a basement flat in Kendal in February 2011. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparable flats in Kendal with a long lease were in the region of £225,800. The average ground rent payable was £60 collected monthly. The lease expiry date was on 24 January 2086. Considering the 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 not including professional charges.
Last year we were called by Ms Sophia Flores , who moved into a ground floor apartment in Kendal in July 1995. We are asked if we could estimate the price would be to extend the lease by ninety years. Comparable premises in Kendal with an extended lease were in the region of £210,000. The average ground rent payable was £50 invoiced per annum. The lease finished in 2106. Considering the 80 years unexpired we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.