Kendal leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Kendal will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not be entitled. There are also strict timetables and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Kendal with in excess of 100 years remaining 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Kendal can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge procuring Kendal lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Benjamin owned a high value flat in Kendal being sold with a lease of just over 72 years left. Benjamin on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin obtained expert advice and secured satisfactory deal informally and sell the flat.
In 2012 we were called by Dr E Dupont who, having bought a studio apartment in Kendal in July 2002. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Identical homes in Kendal with an extended lease were in the region of £216,000. The mid-range ground rent payable was £60 collected annually. The lease expired on 10 July 2083. Taking into account 58 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including professional charges.
In 2011 we were e-mailed by Ms K Howard who, having owned a one bedroom apartment in Kendal in May 1999. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparative homes in Kendal with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced monthly. The lease end date was on 17 November 2103. Having 78 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.