Top reasons for Kirkby Stephen lease extension

Why you should commence your Kirkby Stephen lease extension today:

A Kirkby Stephen leasehold property depreciates with the years remaining on the lease.

Kirkby Stephen leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Kirkby Stephen tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Kirkby Stephen you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may not lend on a short lease

Banks and building societies are making their criteria more stringent and many now want flats to have a minimum of 60 if not 70 years left at the end of the mortgage. Considering plenty of flats in Kirkby Stephen were created in the fifties, sixties and seventies this means many now require lease extensions if they if they are to be mortgageable.

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

The conveyancing solicitors that we work with procure Kirkby Stephen lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Kirkby Stephen Lease Extension Example Cases:

Hugo, Kirkby Stephen, Cumbria,

Hugo was the the leasehold owner of a high value apartment in Kirkby Stephen on the market with a lease of fraction over 61 years unexpired. Hugo on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.

Kirkby Stephen case:

Last year we were e-mailed by Mr and Mrs. T Miller , who bought a ground floor apartment in Kirkby Stephen in June 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable premises in Kirkby Stephen with an extended lease were worth £250,400. The mid-range ground rent payable was £65 invoiced monthly. The lease lapsed in 2090. Considering the 64 years outstanding we estimated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus legals.

Kirkby Stephen case:

Last Summer we were called by Dr Molly François , who took over the lease of a one bedroom apartment in Kirkby Stephen in September 2005. The question was if we could estimate the premium would be to prolong the lease by 90 years. Similar homes in Kirkby Stephen with an extended lease were worth £184,000. The average amount of ground rent was £55 invoiced annually. The lease finished in 2079. Given that there were 53 years left we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.