Kendal leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard 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. Flat owners in Kendal will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
The conveyancing solicitors that we work with undertake Kendal lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Sebastian, started to get close to the 80-year threshold with the lease on his one bedroom flat in Kendal. In buying his property two decades ago, the lease term was of no relevance. Fortunately, he noticed he would imminently be paying way over the odds for a lease extension. Sebastian extended the lease just in the nick of time in June. Sebastian and the freeholder subsequently settled on a premium of £5,500 . If the lease had descended below 80 years, the figure would have escalated by at least £1,000.
In 2012 we were approached by Mr and Mrs. K Edwards who, having took over the lease of a recently refurbished flat in Kendal in July 2007. The question was if we could estimate the premium would be to prolong the lease by an additional years. Comparable flats in Kendal with a long lease were worth £260,200. The average ground rent payable was £65 invoiced every twelve months. The lease concluded on 20 January 2091. Given that there were 66 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including legals.
Last Christmas we were e-mailed by Mr and Mrs. T Bailey , who was assigned a lease of a one bedroom apartment in Kendal in November 2010. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative properties in Kendal with an extended lease were valued about £198,800. The average amount of ground rent was £55 billed every twelve months. The lease expiry date was in 2080. Given that there were 55 years remaining we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 not including fees.