The re-sale value of a leasehold property in Kendal is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be finalised in advance of the 80 year mark. Leasehold Reform legislation entitles Kendal qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Kendal with more than one hundred years left 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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 conveyancer we work with provide it.
Subsequent to unsuccessful correspondence with the landlord of her leasehold flat in Kendal, Poppy commenced the lease extension process just as the lease was nearing the crucial 80-year mark. The legal work was concluded in May 2009. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were contacted by Mr and Mrs. K Cooper , who completed a ground floor apartment in Kendal in June 2012. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Identical flats in Kendal with a long lease were in the region of £290,000. The average amount of ground rent was £45 collected every twelve months. The lease finished on 2 March 2098. Given that there were 73 years unexpired we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
Last Winter we were phoned by Mr and Mrs. V Stewart , who bought a ground floor apartment in Kendal in November 1996. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable flats in Kendal with a long lease were worth £240,600. The mid-range amount of ground rent was £60 collected per annum. The lease terminated on 6 May 2087. Considering the 62 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 not including expenses.