The market value of a leasehold property in Kirkby Stephen depends on how long the lease has left to run. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that a lease extension can be finalised ahead of the 80 year threshold. Leasehold Reform legislation entitles Kirkby Stephen qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Kirkby Stephen with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Santander | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a landlord in Kirkby Stephen,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kirkby Stephen valuers.
Last Christmas Muhammad, started to get near to the eighty-year threshold with the lease on his basement flat in Kirkby Stephen. In buying his home two decades ago, the lease term was of little concern. Thankfully, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Muhammad extended the lease just in the nick of time in September. Muhammad and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If he failed to meet the deadline, the premium would have gone up by at least £1,125.
Mr and Mrs. T Smith was assigned a lease of a one bedroom apartment in Kirkby Stephen in August 1995. The question was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar flats in Kirkby Stephen with an extended lease were worth £270,000. The average ground rent payable was £65 collected monthly. The lease lapsed on 12 May 2094. Taking into account 68 years remaining we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.
In 2014 we were e-mailed by Ms Chantelle Mitchell who, having moved into a one bedroom apartment in Kirkby Stephen in October 2011. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative residencies in Kirkby Stephen with an extended lease were valued around £208,600. The mid-range ground rent payable was £60 invoiced yearly. The lease lapsed in 2083. Taking into account 57 years remaining we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including legals.