The re-sale value of a leasehold property in Kendal depends on how long the lease has left to run. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that formalities can be concluded well before the 80 year threshold. Statute enables Kendal qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | 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. |
| 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. |
Lease extensions in Kendal can be a difficult process. We recommend you get guidance from a conveyancing solicitor 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 in-depth market knowledge dealing with Kendal lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Archie, came seriously close to the 80-year threshold with the lease on his basement flat in Kendal. Having bought his home twenty years ago, the unexpired term was of no significance. Fortunately, he became aware that he would imminently be paying an escalated premium for Extending the lease. Archie arranged for a lease extension at the eleventh hour in September. Archie and the freeholder ultimately agreed on a premium of £6,000 . If he failed to meet the deadline, the amount would have gone up by at least £925.
Ms A Bell moved into a studio flat in Kendal in November 2003. We are asked if we could estimate the premium could be to extend the lease by ninety years. Comparable flats in Kendal with 100 year plus lease were valued about £210,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expiry date was in 2105. Considering the 80 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.
Dr V Girard purchased a basement apartment in Kendal in February 2000. The dilemma was if we could approximate the price would be for a ninety year lease extension. Identical premises in Kendal with an extended lease were in the region of £275,000. The mid-range ground rent payable was £45 collected yearly. The lease came to a finish on 20 July 2094. Taking into account 69 years remaining we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.