The market value of a leasehold property in Kirkby Stephen depends on how many years the lease has left to run. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the lease extension process when a lease still has 82 years to run so that all matters can be addressed in advance of the 80 year cut off point. Statute enables Kirkby Stephen qualifying lessees to an additional term of ninety years in addition to the remaining term, at a nominal rent (zero ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly 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 many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Kirkby Stephen can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.
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 a wealth of experience 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.
Michael was the the leasehold proprietor of a conversion apartment in Kirkby Stephen being sold with a lease of fraction over fifty eight years outstanding. Michael informally contacted 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 a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Michael to invoke his statutory right. Michael obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Dr Katherine Williams took over the lease of a one bedroom flat in Kirkby Stephen in February 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Kirkby Stephen with 100 year plus lease were valued about £205,000. The mid-range amount of ground rent was £50 collected yearly. The lease concluded on 12 July 2104. Having 78 years outstanding we approximated the compensation to the landlord for the lease extension to be between £7,600 and £8,800 not including costs.
Last year we were e-mailed by Mr Connor Murphy , who completed a ground floor apartment in Kirkby Stephen in April 2002. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar homes in Kirkby Stephen with 100 year plus lease were in the region of £270,000. The average ground rent payable was £65 collected every twelve months. The lease elapsed in 2094. Considering the 68 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.