Kirkby In Furness leases on residential properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Kirkby In Furness will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and procedures to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Kirkby In Furness,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Kirkby In Furness valuers.
Blake owned a high value flat in Kirkby In Furness on the market with a lease of fraction over 72 years unexpired. Blake informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Blake to invoke his statutory right. Blake procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2014 we were approached by Mr C Campbell who, having completed a purpose-built apartment in Kirkby In Furness in July 1995. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparable homes in Kirkby In Furness with an extended lease were in the region of £218,000. The average ground rent payable was £45 collected quarterly. The lease elapsed on 9 February 2089. Given that there were 63 years as a residual term we calculated the premium to the landlord for the lease extension to be within £17,100 and £19,800 plus expenses.
Last Spring we were phoned by Mrs Isabelle Walker , who took over the lease of a garden flat in Kirkby In Furness in February 2005. The question was if we could estimate the price could be for a ninety year extension to my lease. Identical residencies in Kirkby In Furness with an extended lease were valued around £265,000. The average amount of ground rent was £50 invoiced quarterly. The lease expired on 9 September 2100. Given that there were 74 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.