Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Kirkby Lonsdale. Inevitably, the length of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Kirkby Lonsdale have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Please give careful attention before putting off your Kirkby Lonsdale lease extension. Putting off that expense now simply increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Kirkby Lonsdale leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Andrew owned a studio flat in Kirkby Lonsdale being sold with a lease of just over sixty years left. Andrew on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be due on a lease extension were Andrew to invoke his statutory right. Andrew procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the flat.
In 2011 we were approached by Mr Alexander Díaz who, having was assigned a lease of a one bedroom flat in Kirkby Lonsdale in July 2006. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable residencies in Kirkby Lonsdale with an extended lease were valued around £270,000. The mid-range ground rent payable was £55 collected annually. The lease came to a finish in 2101. Considering the 75 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Mr and Mrs. U Turner moved into a studio flat in Kirkby Lonsdale in November 2009. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative properties in Kirkby Lonsdale with an extended lease were valued about £168,800. The mid-range ground rent payable was £60 invoiced annually. The lease expired on 13 September 2081. Taking into account 55 years unexpired we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including costs.