It’s an underpublicised certainty that a Kirkby Stephen residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Kirkby Stephen property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining falls under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Kirkby Stephen will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your Kirkby Stephen leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the freeholder of her leasehold flat in Kirkby Stephen, Maisie initiated the lease extension process just as the lease was nearing the crucial 80-year mark. The lease extension was concluded in May 2006. The landlord’s costs were restricted to under 550 pounds.
Mr and Mrs. G Brooks completed a studio flat in Kirkby Stephen in February 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Kirkby Stephen with a long lease were in the region of £265,200. The mid-range ground rent payable was £65 collected monthly. The lease expired in 2091. Considering the 66 years left we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including expenses.
Mr and Mrs. I Lee owned a garden apartment in Kirkby Stephen in May 2001. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Identical properties in Kirkby Stephen with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 collected monthly. The lease ran out on 9 March 2080. Taking into account 55 years left we calculated the premium to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of fees.