With a long leasehold property in Kirkby Lonsdale, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Leasehold owners in Kirkby Lonsdale with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. When a lease has below eighty years outstanding, under the relevant Act the landlord is entitled to calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Kirkby Lonsdale with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Engaging our service gives you better control over the value of your Kirkby Lonsdale leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Liam, came very close to the 80-year mark with the lease on his two bedroom flat in Kirkby Lonsdale. In buying his flat two decades ago, the unexpired term was of little relevance. by good luck, it dawned on him that he needed to take action soon on a lease extension. Liam arranged for a lease extension just ahead of time in April. Liam and the landlord subsequently agreed on a premium of £5,500 . If he had missed the deadline, the sum would have escalated by at least £1,025.
In 2013 we were called by Dr D Hernández who, having took over the lease of a garden apartment in Kirkby Lonsdale in May 2005. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical flats in Kirkby Lonsdale with 100 year plus lease were valued around £193,400. The average amount of ground rent was £65 billed annually. The lease terminated in 2084. Taking into account 59 years unexpired we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including fees.
In 2009 we were called by Mr and Mrs. G Petit who, having purchased a garden flat in Kirkby Lonsdale in April 2009. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparative residencies in Kirkby Lonsdale with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 collected yearly. The lease lapsed in 2095. Given that there were 70 years left we approximated the compensation to the freeholder for the lease extension to be within £10,500 and £12,000 plus fees.