Kirkby Stephen residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Kirkby Stephen can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Kirkby Stephen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Logan, started to get near to the 80-year mark with the lease on his basement flat in Kirkby Stephen. In buying his home 18 years ago, the unexpired term was of little concern. by good luck, he became aware that he needed to take steps soon on a lease extension. Logan was able to extend his lease just in the nick of time in March. Logan and the landlord who owned the flat above ultimately agreed on the final figure of £5,000 . If he not met the deadline, the price would have escalated by at least £950.
Last Autumn we were e-mailed by Mr and Mrs. H Roux , who bought a ground floor apartment in Kirkby Stephen in January 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Kirkby Stephen with 100 year plus lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced annually. The lease ran out on 9 October 2105. Given that there were 80 years left we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.
In 2009 we were phoned by Dr Toby Gómez who, having purchased a studio apartment in Kirkby Stephen in September 2012. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparable homes in Kirkby Stephen with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease finished in 2094. Taking into account 69 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.