The only way is down when it comes to Kirkby Stephen lease terms. Kirkby Stephen flats that have a remaining term less than than eighty years will reduce in value at a rapid rate, and the cost of extending your lease will rise.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
After lengthy discussions with the landlord of her purpose-built apartment in Kirkby Stephen, Katie initiated the lease extension process just as the lease was approaching the crucial eighty-year deadline. The legal work was finalised in April 2014. The landlord’s costs were kept to an absolute minimum.
Mrs Molly Cook acquired a basement flat in Kirkby Stephen in September 2003. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparable homes in Kirkby Stephen with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease terminated on 13 July 2098. Considering the 72 years remaining we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.
Last Autumn we were e-mailed by Mr L Flores , who bought a one bedroom flat in Kirkby Stephen in May 1998. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Kirkby Stephen with a long lease were worth £233,200. The average amount of ground rent was £60 invoiced monthly. The lease concluded on 23 May 2087. Given that there were 61 years remaining we approximated the premium to the landlord to extend the lease to be between £22,800 and £26,400 plus costs.