The value of Kirkby Lonsdale leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is below than eighty years
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancing solicitors that we work with undertake Kirkby Lonsdale 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 conveyancing solicitor we work with provide it.
Last Autumn Jake, started to get close to the 80-year mark with the lease on his purpose- built flat in Kirkby Lonsdale. Having bought his property two decades ago, the lease term was of no bearing. As luck would have it, he noticed he would soon be paying an inflated amount for a lease extension. Jake was able to extend his lease just in the nick of time last January. Jake and the freeholder ultimately agreed on an amount of £5,000 . If the lease had dipped to less than 80 years, the premium would have increased by at least £875.
Mrs Melissa Peterson completed a purpose-built flat in Kirkby Lonsdale in March 2008. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Identical premises in Kirkby Lonsdale with an extended lease were valued about £183,600. The average ground rent payable was £65 collected monthly. The lease lapsed in 2083. Taking into account 57 years outstanding we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.
Mr and Mrs. A David purchased a purpose-built flat in Kirkby Lonsdale in June 1996. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparative premises in Kirkby Lonsdale with a long lease were in the region of £245,000. The average ground rent payable was £50 billed quarterly. The lease ended on 16 October 2094. Given that there were 68 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.