Kirkby Stephen residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
Leasehold premises in Kirkby Stephen with over one hundred 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Kirkby Stephen can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with 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.
Tommy was the the leasehold owner of a studio apartment in Kirkby Stephen on the market with a lease of just over fifty eight years unexpired. Tommy informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Tommy to invoke his statutory right. Tommy procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Mrs A Hill moved into a ground floor apartment in Kirkby Stephen in April 2004. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Kirkby Stephen with 100 year plus lease were valued about £184,000. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded in 2079. Given that there were 53 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of costs.
In 2012 we were phoned by Mrs R Roux who, having owned a first floor flat in Kirkby Stephen in June 1996. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Kirkby Stephen with 100 year plus lease were valued about £290,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease finished on 8 May 2099. Given that there were 73 years remaining we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.