As the the remaining lease term of a Kendal domestic lease decreases so does its value and therefore the value of your property. Where the lease has, more than 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Kendal will meet the qualifying criteria; nevertheless a conveyancer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Kendal with in excess of 100 years unexpired 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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 conveyancers 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.
14 months ago Isaac, came very near to the eighty-year threshold with the lease on his garden flat in Kendal. In buying his property twenty years ago, the lease term was of little concern. As luck would have it, he became aware that he would imminently be paying an escalated premium for a lease extension. Isaac extended the lease just under the wire last September. Isaac and the landlord who owned the flat above in the end agreed on sum of £5,500 . If he had missed the deadline, the premium would have gone up by at least £875.
Last Autumn we were contacted by Mr and Mrs. R Mitchell , who moved into a garden flat in Kendal in August 1997. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar flats in Kendal with a long lease were in the region of £233,200. The average amount of ground rent was £60 collected every twelve months. The lease finished on 21 January 2085. Considering the 61 years unexpired we approximated the premium to the landlord for the lease extension to be within £22,800 and £26,400 plus professional charges.
Ms Chloe Ward took over the lease of a one bedroom flat in Kendal in January 1995. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical homes in Kendal with a long lease were in the region of £166,800. The average amount of ground rent was £50 invoiced per annum. The lease expired on 17 November 2074. Taking into account 50 years unexpired we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including professional charges.