Unfortunately that a Kendal residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Kendal property prices.Once your lease gets to 85ish years, you need to start considering 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 under eighty years - otherwise a higher premium will be due. Most leasehold owners in Kendal will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold premises in Kendal with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Kendal leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the freeholder of her first floor apartment in Kendal, Robyn initiated the lease extension process as the 80 year threshold was swiftly coming. The lease extension was finalised in May 2007. The freeholder’s costs were negotiated to approximately 450 pounds.
Ms Isobel Jackson purchased a recently refurbished flat in Kendal in February 2011. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Kendal with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 collected monthly. The lease end date was on 1 January 2078. Having 52 years outstanding we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including legals.
Last October we were called by Mr Y Gunderson , who completed a basement apartment in Kendal in September 2002. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparative flats in Kendal with a long lease were valued around £290,000. The mid-range ground rent payable was £45 billed annually. The lease finished in 2098. Considering the 72 years unexpired we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus legals.