Why you should commence your Kirkby Lonsdale lease extension

Top reasons for lease extension now:

A Kirkby Lonsdale lease depreciates with the years remaining on the lease.

Kirkby Lonsdale leases on residential properties are gradually diminishing in 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 Lonsdale enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Kirkby Lonsdale you really ought to see if your lease has between seventy and 90 years remaining. There are good reasons why a Kirkby Lonsdale leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is put in place without delay

Kirkby Lonsdale property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.

Mortgage lenders will not lend with a short lease

Lending institutions have set criteria when loaning monies secured on leasehold property. Some will simply not lend at all once an unexpired lease term slips beneath a specified unexpired lease term. Many Mortgage lenders will not consider property with a remaining term of less than 75 years as adequate security. In addition to impacting your ability to sell, it is also relevant where you are seeking to remortgage your Kirkby Lonsdale home.

Get in touch with one of our Kirkby Lonsdale lease extension solicitors or enfranchisement solicitors

Retaining our service gives you enhanced control over the value of your Kirkby Lonsdale leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Kirkby Lonsdale Lease Extension Case Studies:

Joseph, Kirkby Lonsdale, Cumbria

During the course of the last few months Joseph, came very near to the 80-year mark with the lease on his ground floor flat in Kirkby Lonsdale. Having purchased his flat two decades ago, the length of the lease was of minimal bearing. As luck would have it, he became aware that he would imminently be paying an inflated amount for a lease extension. Joseph extended the lease just under the wire last July. Joseph and the freeholder via the managing agents subsequently agreed on the final figure of £6,000 . If the lease had slipped to less than 80 years, the figure would have increased by at least £1,125.

Kirkby Lonsdale case:

Last April we were called by Dr S Dupont , who completed a garden flat in Kirkby Lonsdale in May 2006. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Kirkby Lonsdale with an extended lease were valued around £225,400. The average ground rent payable was £45 collected annually. The lease ran out on 28 July 2090. Having 64 years remaining we calculated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of fees.

Kirkby Lonsdale case:

In 2014 we were called by Ms Francesca André who, having acquired a recently refurbished flat in Kirkby Lonsdale in June 2000. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Comparable premises in Kirkby Lonsdale with a long lease were in the region of £270,000. The average ground rent payable was £55 invoiced quarterly. The lease finished in 2101. Taking into account 75 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.