Kendal residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold premises in Kendal with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| Leeds Building Society |
The conveyancing solicitors that we work with procure 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.
During the course of the last few months Andrew, came critically near to the 80-year threshold with the lease on his ground floor apartment in Kendal. In buying his flat two decades ago, the unexpired term was of little bearing. by good luck, he became aware that he needed to take steps soon on a lease extension. Andrew extended the lease at the eleventh hour last January. Andrew and the freeholder ultimately settled on the final figure of £5,500 . If the lease had dropped lower than eighty years, the premium would have increased by at least £1,050.
Mrs Anna Torres was assigned a lease of a basement apartment in Kendal in September 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparable properties in Kendal with a long lease were in the region of £210,000. The average amount of ground rent was £50 billed quarterly. The lease termination date was in 2106. Considering the 80 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.
Last year we were phoned by Mr and Mrs. C Harris , who took over the lease of a first floor apartment in Kendal in September 2003. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable flats in Kendal with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 billed monthly. The lease concluded on 25 June 2095. Given that there were 69 years remaining we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.