When it comes to domestic leasehold premises in Kirkby In Furness, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Leasehold owners in Kirkby In Furness with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has less than 80 years left, under the relevant legislation the freeholder can calculate and levy a larger amount, based on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Kirkby In Furness with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Kirkby In Furness can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Kirkby In Furness lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the freeholder of her garden flat in Kirkby In Furness, Ellen commenced the lease extension process as the eighty year mark was rapidly coming. The lease extension completed in October 2009. The landlord’s costs were kept to an absolute minimum.
Mr F Thompson bought a basement flat in Kirkby In Furness in August 2006. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Identical premises in Kirkby In Furness with a long lease were in the region of £186,000. The mid-range ground rent payable was £65 collected annually. The lease expired in 2083. Considering the 58 years outstanding we approximated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of expenses.
Mr and Mrs. T Simon took over the lease of a newly refurbished apartment in Kirkby In Furness in March 1996. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Identical premises in Kirkby In Furness with an extended lease were valued about £250,000. The average amount of ground rent was £50 collected yearly. The lease elapsed in 2094. Considering the 69 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.