Kirkby Stephen leases on domestic properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Kirkby Stephen will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and steps to follow once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Kirkby Stephen with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
The lawyers that we work with procure Kirkby Stephen 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.
Trailing unsuccessful correspondence with the freeholder of her studio apartment in Kirkby Stephen, Yasmin commenced the lease extension process just as her lease was approaching the all-important 80-year threshold. The lease extension was concluded in October 2011. The freeholder’s charges were restricted to under four hundred pounds.
In 2012 we were approached by Mr and Mrs. J Thompson who, having purchased a one bedroom apartment in Kirkby Stephen in November 1997. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparable properties in Kirkby Stephen with an extended lease were valued about £223,400. The average amount of ground rent was £60 collected every twelve months. The lease finished in 2084. Considering the 59 years remaining we calculated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of expenses.
In 2010 we were e-mailed by Dr Gemma Gray who, having was assigned a lease of a basement apartment in Kirkby Stephen in July 1997. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Similar premises in Kirkby Stephen with a long lease were valued about £205,000. The average amount of ground rent was £50 invoiced annually. The lease came to a finish in 2104. Considering the 79 years left we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.