Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Kendal. Inevitably, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the residence has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Kendal have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful attention before putting off your Kendal lease extension. Holding off that expense now likely increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Kendal with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Regardless of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Kendal valuers.
Off the back of lengthy negotiations with the freeholder of her leasehold apartment in Kendal, Jodie started the lease extension process just as her lease was approaching the all-important eighty-year deadline. The lease extension was finalised in November 2011. The landlord’s costs were kept to an absolute minimum.
In 2012 we were e-mailed by Mrs R Petit who, having took over the lease of a one bedroom apartment in Kendal in March 2010. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Kendal with 100 year plus lease were in the region of £243,000. The average amount of ground rent was £65 collected quarterly. The lease came to a finish on 26 February 2089. Considering the 63 years unexpired we estimated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of expenses.
Mr and Mrs. O Nguyen took over the lease of a first floor apartment in Kendal in October 2011. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparative premises in Kendal with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 invoiced quarterly. The lease expired in 2078. Considering the 52 years as a residual term we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus professional charges.