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. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Kirkby In Furness,the lease extension experts 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.
Kai was the the leasehold proprietor of a studio flat in Kirkby In Furness being sold with a lease of just over 72 years remaining. Kai on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Kai to exercise his statutory right. Kai obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2010 we were phoned by Mr Omar Walker who, having purchased a garden apartment in Kirkby In Furness in February 1996. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparative flats in Kirkby In Furness with 100 year plus lease were in the region of £186,000. The mid-range ground rent payable was £65 collected every twelve months. The lease termination date was in 2083. Given that there were 58 years remaining we calculated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 plus professional charges.
In 2014 we were approached by Dr D Carter who, having purchased a one bedroom flat in Kirkby In Furness in April 1996. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparative flats in Kirkby In Furness with 100 year plus lease were valued about £250,000. The average amount of ground rent was £50 collected monthly. The lease elapsed on 21 January 2094. Given that there were 69 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.