Chances are that if you own a flat in Kirkby Stephen you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors 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 lawyer we work with provide it.
Ethan owned a studio apartment in Kirkby Stephen being sold with a lease of a few days over 59 years remaining. Ethan on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Ethan to exercise his statutory right. Ethan procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Mrs W Hill completed a garden flat in Kirkby Stephen in July 2004. The question was if we could approximate the premium could be to extend the lease by an additional years. Comparative homes in Kirkby Stephen with an extended lease were worth £300,000. The average ground rent payable was £50 collected per annum. The lease expired in 2100. Considering the 75 years remaining we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
Last month we were approach by Dr S Moreau , who owned a garden apartment in Kirkby Stephen in February 2000. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar homes in Kirkby Stephen with a long lease were worth £250,400. The mid-range ground rent payable was £65 invoiced every twelve months. The lease terminated on 12 October 2089. Taking into account 64 years left we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus expenses.