Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Kirkby Stephen. Clearly, the length of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the residence has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Kirkby Stephen have the legal entitlement to extend the lease for a further ninety years in accordance with statute. Do give due attention before putting off your Kirkby Stephen lease extension. Putting off that expense now only increases the price you will ultimately incur for a lease extension
Leasehold premises in Kirkby Stephen with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Engaging our service will provide you better control over the value of your Kirkby Stephen leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Gabriel was the the leasehold proprietor of a high value flat in Kirkby Stephen being sold with a lease of a few days over 59 years left. Gabriel informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mr B Nguyen acquired a studio flat in Kirkby Stephen in February 2006. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Kirkby Stephen with 100 year plus lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected per annum. The lease concluded in 2102. Having 76 years unexpired we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.
Ms S Carter bought a purpose-built apartment in Kirkby Stephen in August 2003. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparable homes in Kirkby Stephen with an extended lease were worth £252,800. The average ground rent payable was £65 collected monthly. The lease end date was in 2091. Considering the 65 years left we approximated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus legals.