Chances are that where you own a flat in Kirkby Stephen you actually own a long leasehold interest over your property
Leasehold properties in Kirkby Stephen with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The lawyers that we work with procure Kirkby Stephen 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 conveyancer we work with provide it.
Jonathan was the the leasehold proprietor of a studio apartment in Kirkby Stephen being marketed with a lease of fraction over fifty eight years remaining. Jonathan on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jonathan to exercise his statutory right. Jonathan obtained expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
In 2009 we were approached by Mrs O Carter who, having was assigned a lease of a basement apartment in Kirkby Stephen in February 2011. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical properties in Kirkby Stephen with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £45 billed quarterly. The lease ended on 27 January 2096. Given that there were 70 years remaining we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.
In 2014 we were approached by Mr and Mrs. F Lewis who, having completed a newly refurbished flat in Kirkby Stephen in February 2009. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable residencies in Kirkby Stephen with a long lease were in the region of £223,400. The average ground rent payable was £60 collected per annum. The lease ended in 2085. Given that there were 59 years outstanding we estimated the premium to the landlord to extend the lease to be within £27,600 and £31,800 plus professional charges.