Kendal Lease Extension - Free Consultation

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Main reasons to commence your Kendal lease extension


Top reasons for lease extension now:

Increase your lease and increase your Kendal property value

It’s a harsh truth that a Kendal residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Kendal property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Kendal will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Kendal with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.

Lenders will not loan monies on a short lease

Lending institutions are less likely to issue a loan offer on a residential flat in Kendal with a short lease. Many lenders simply refuse to lend on leases with below 75 years left.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
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;
Chelsea 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.
Halifax Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years.

Get in touch with one of our Kendal lease extension solicitors or enfranchisement solicitors

The lawyers that we work with undertake Kendal 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 conveyancing solicitor we work with provide it.

Kendal Lease Extension Case Studies:

Emily, Kendal, Cumbria,

Subsequent to unsuccessful correspondence with the freeholder of her studio apartment in Kendal, Emily initiated the lease extension process just as the lease was coming close to the all-important eighty-year mark. The lease extension was finalised in September 2009. The freeholder’s costs were kept to an absolute minimum.

Kendal case:

Last year we were contacted by Mrs Grace Hill , who acquired a studio flat in Kendal in June 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Identical flats in Kendal with 100 year plus lease were valued about £184,000. The mid-range ground rent payable was £55 collected quarterly. The lease elapsed in 2077. Considering the 53 years as a residual term we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.

Kendal case:

Mr and Mrs. B Thomas took over the lease of a first floor apartment in Kendal in June 2003. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparable residencies in Kendal with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed monthly. The lease lapsed on 9 July 2097. Considering the 73 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.