There is no doubt about it a leasehold property in Kendal is a wasting asset as a result of the shortening lease. Where the lease has, over 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner rather than later. Many flat owners in Kendal will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Kendal leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the freeholder of her leasehold flat in Kendal, Alicia commenced the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction was finalised in April 2015. The landlord’s charges were kept to an absolute minimum.
Mr R Mercier completed a purpose-built flat in Kendal in January 2012. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar properties in Kendal with an extended lease were worth £198,800. The mid-range ground rent payable was £55 collected yearly. The lease ran out in 2081. Taking into account 55 years outstanding we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including professional charges.
Last Summer we were e-mailed by Dr K Vincent , who acquired a one bedroom flat in Kendal in September 2001. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in Kendal with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 collected per annum. The lease concluded on 16 March 2101. Having 75 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.