Kirkby In Furness leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Kirkby In Furness tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Kirkby In Furness you should check if your lease has between seventy and ninety years left. There are good reasons why a Kirkby In Furness leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is actioned without delay
Leasehold properties in Kirkby In Furness with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Kirkby In Furness,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kirkby In Furness valuers.
Toby was the the leasehold proprietor of a conversion flat in Kirkby In Furness being sold with a lease of a little over sixty years remaining. Toby informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Toby to invoke his statutory right. Toby obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Last Autumn we were e-mailed by Mr P Turner , who purchased a first floor flat in Kirkby In Furness in July 2012. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical homes in Kirkby In Furness with a long lease were valued about £265,000. The average ground rent payable was £50 collected monthly. The lease lapsed on 17 July 2099. Considering the 74 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
Last year we were called by Mr Milo Hernández , who owned a garden apartment in Kirkby In Furness in July 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable properties in Kirkby In Furness with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 billed every twelve months. The lease ran out in 2079. Considering the 54 years unexpired we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including costs.