Kirkby In Furness leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Kirkby In Furness enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Kirkby In Furness you would be well advised to see if your lease has between 70 and 90 years left. There are good reasons why a Kirkby In Furness leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Kirkby In Furness can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with 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.
Sebastian was the the leasehold proprietor of a high value flat in Kirkby In Furness being sold with a lease of a few days over sixty years remaining. Sebastian informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Sebastian to invoke his statutory right. Sebastian procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mr R Lefèvre was assigned a lease of a one bedroom flat in Kirkby In Furness in October 1995. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Kirkby In Furness with an extended lease were valued about £168,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease ended on 23 May 2081. Considering the 55 years left we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including professional charges.
Dr Rachel Scott completed a newly refurbished flat in Kirkby In Furness in November 2012. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar flats in Kirkby In Furness with a long lease were valued about £235,200. The average amount of ground rent was £45 invoiced monthly. The lease concluded in 2092. Taking into account 66 years remaining we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.