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 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. Where you are a leasehold owner in Kirkby In Furness you really ought to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Kirkby In Furness with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Kirkby In Furness lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of 9 months of protracted negotiations with the freeholder of her leasehold apartment in Kirkby In Furness, Bethany commenced the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work was finalised in October 2006. The landlord’s costs were restricted to under 650 GBP.
In 2011 we were e-mailed by Mrs D James who, having took over the lease of a recently refurbished flat in Kirkby In Furness in May 2007. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparative residencies in Kirkby In Furness with 100 year plus lease were worth £203,200. The mid-range amount of ground rent was £65 billed monthly. The lease finished in 2087. Taking into account 61 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 plus expenses.
Last month we were e-mailed by Mrs F Martin , who owned a ground floor flat in Kirkby In Furness in July 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Kirkby In Furness with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 collected every twelve months. The lease ended on 16 October 2098. Having 72 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.