When it comes to domestic leasehold premises in Kirkby Stephen, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Residents in Kirkby Stephen with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has under eighty years left, under the current Act the landlord can calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Kirkby Stephen with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Kirkby Stephen can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Kirkby Stephen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ali was the the leasehold proprietor of a 2 bedroom flat in Kirkby Stephen on the market with a lease of a little over 59 years unexpired. Ali on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ali to invoke his statutory right. Ali procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Mr Alexander Parker acquired a first floor apartment in Kirkby Stephen in January 2009. The question was if we could approximate the premium could be to extend the lease by an additional years. Similar premises in Kirkby Stephen with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease lapsed in 2093. Having 68 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
Ms T Martínez owned a garden flat in Kirkby Stephen in January 1996. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative flats in Kirkby Stephen with a long lease were in the region of £213,600. The mid-range ground rent payable was £60 invoiced annually. The lease concluded in 2082. Taking into account 57 years left we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of costs.