Top reasons for Kirkby Stephen lease extension

Why you should start your Kirkby Stephen lease extension today:

Increase your lease and increase your Kirkby Stephen property value

Unfortunately that a Kirkby Stephen residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Kirkby Stephen property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be due. The majority of flat owners in Kirkby Stephen will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.

Kirkby Stephen property with a lease extension has roughly the same value as a freehold

Leasehold properties in Kirkby Stephen with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth 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 service charges warrant it.

Banks and Building Societies will not finance a property with a short lease

The trend since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past banks were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Kirkby Stephen lease extension solicitors or enfranchisement solicitors

Using our service gives you better control over the value of your Kirkby Stephen leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Kirkby Stephen Lease Extension Example Cases:

Eleanor, Kirkby Stephen, Cumbria,

After lengthy correspondence with the freeholder of her leasehold flat in Kirkby Stephen, Eleanor initiated the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The legal work was finalised in February 2015. The freeholder’s costs were kept to an absolute minimum.

Kirkby Stephen case:

Last Winter we were phoned by Mr and Mrs. P Rodríguez , who owned a studio apartment in Kirkby Stephen in September 2002. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable homes in Kirkby Stephen with an extended lease were in the region of £198,800. The average amount of ground rent was £55 collected monthly. The lease ended in 2081. Taking into account 55 years as a residual term we estimated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including costs.

Kirkby Stephen case:

In 2013 we were approached by Dr Caleb Cooper who, having purchased a one bedroom flat in Kirkby Stephen in May 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Comparable premises in Kirkby Stephen with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease lapsed on 27 March 2102. Considering the 76 years as a residual term we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.