Kirkby Stephen leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher amount will be due. Leasehold owners in Kirkby Stephen will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and formalities to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Kirkby Stephen,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kirkby Stephen valuers.
Ali was the the leasehold owner of a high value flat in Kirkby Stephen on the market with a lease of fraction over fifty eight years unexpired. Ali informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ali to invoke his statutory right. Ali procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2013 we were phoned by Dr Megan Parker who, having was assigned a lease of a one bedroom apartment in Kirkby Stephen in May 2000. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparable properties in Kirkby Stephen with an extended lease were worth £290,000. The mid-range ground rent payable was £45 billed monthly. The lease finished in 2099. Taking into account 73 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Last Autumn we were e-mailed by Dr B Roberts , who purchased a first floor flat in Kirkby Stephen in November 2008. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable homes in Kirkby Stephen with an extended lease were worth £240,600. The mid-range amount of ground rent was £65 invoiced quarterly. The lease lapsed in 2088. Taking into account 62 years outstanding we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus costs.