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Main reasons to start your Kendal lease extension

Main reasons to start your Kendal lease extension today:

A Kendal leasehold property depreciates with the years remaining on the lease.

When it comes to residential leasehold premises in Kendal, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Residents in Kendal with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When the lease term has under eighty years left, under the relevant statute the freeholder can calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold properties in Kendal with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

Lending institutions may not grant a mortgage with a short lease

Most high street banks are tightening their criteria and a meaningful number now require flats to have at least sixty if not seventy years left at the end of the mortgage. As plenty of flats in Kendal were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to get a mortgage.

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.
Bank of Scotland Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.
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
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

What makes us experts in Kendal lease extensions?

Irrespective of whether you are a tenant or a landlord in Kendal,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kendal valuers.

Kendal Lease Extension Case Summaries:

James, Kendal, Cumbria

Last year James, started to get close to the eighty-year threshold with the lease on his leasehold flat in Kendal. Having purchased his flat 19 years previously, the unexpired term was of no significance. Luckily, he recognised he would imminently be paying way over the odds for a lease extension. James was able to extend his lease just under the wire last April. James and the freeholder via the managing agents eventually settled on sum of £5,500 . If the lease had fallen to less than 80 years, the sum would have increased by at least £850.

Kendal case:

Last year we were approach by Mrs O King , who purchased a purpose-built apartment in Kendal in May 2005. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Comparative properties in Kendal with 100 year plus lease were in the region of £300,000. The mid-range ground rent payable was £50 collected yearly. The lease finished on 10 March 2096. Given that there were 75 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.

Kendal case:

In 2009 we were contacted by Mr and Mrs. C Leroy who, having took over the lease of a one bedroom apartment in Kendal in January 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Kendal with 100 year plus lease were worth £252,800. The mid-range ground rent payable was £65 invoiced yearly. The lease finished on 28 February 2086. Considering the 65 years left we calculated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 plus costs.