When it comes to domestic leasehold property in Kendal, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years remaining. Leasehold owners in Kendal with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When a lease has less than eighty years left, under the relevant statute the landlord can calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Kendal with over 100 years unexpired 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 property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
Half a year ago Michael, started to get near to the 80-year threshold with the lease on his two bedroom flat in Kendal. Having bought his flat 18 years previously, the lease term was of no importance. Thankfully, he recognised he would imminently be paying an escalated premium for a lease extension. Michael was able to extend his lease at the eleventh hour last August. Michael and the freeholder in the end agreed on an amount of £5,500 . If the lease had fallen below eighty years, the price would have escalated by a minimum £850.
Dr B Phillips acquired a one bedroom flat in Kendal in June 2009. We are asked if we could estimate the premium would be to extend the lease by 90 years. Comparable residencies in Kendal with a long lease were worth £285,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease came to a finish in 2096. Having 71 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.
In 2011 we were approached by Mr and Mrs. B Brooks who, having completed a first floor flat in Kendal in January 2001. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar homes in Kendal with an extended lease were valued around £225,800. The mid-range ground rent payable was £60 invoiced yearly. The lease elapsed on 2 August 2085. Considering the 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 not including legals.