Kirkby Lonsdale leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease dips below eighty years - otherwise a higher amount will be due. Leasehold owners in Kirkby Lonsdale will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some cases you may not qualify. There are also strict deadlines and steps to follow once the process has commenced so it’s sensible to be guided by a lawyer during the process.
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 any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Kirkby Lonsdale leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Tommy, came very close to the eighty-year mark with the lease on his first floor apartment in Kirkby Lonsdale. Having bought his property two decades ago, the unexpired term was of minimal relevance. As luck would have it, he recognised he needed to take action soon on a lease extension. Tommy arranged for a lease extension just in the nick of time in April. Tommy and the freeholder ultimately settled on sum of £6,000 . If the lease had dipped to less than 80 years, the amount would have increased by at least £875.
Last February we were phoned by Mrs K Turner , who purchased a garden flat in Kirkby Lonsdale in February 1995. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Kirkby Lonsdale with 100 year plus lease were worth £242,600. The mid-range ground rent payable was £45 billed every twelve months. The lease concluded on 15 September 2092. Considering the 67 years outstanding we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of legals.
Last November we were e-mailed by Ms Holly Nguyen , who took over the lease of a basement flat in Kirkby Lonsdale in November 2002. The question was if we could approximate the price would be for a ninety year lease extension. Comparative properties in Kirkby Lonsdale with an extended lease were valued about £280,000. The mid-range ground rent payable was £55 invoiced yearly. The lease end date was in 2103. Considering the 78 years left we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus fees.