For those whose Kirkby Stephen home is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
Leasehold residencies in Kirkby Stephen with in excess of 100 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
After protracted negotiations with the freeholder of her studio apartment in Kirkby Stephen, Alexandra started the lease extension process just as the lease was coming close to the crucial eighty-year mark. The legal work was concluded in July 2011. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were called by Mr and Mrs. N Watson who, having bought a one bedroom flat in Kirkby Stephen in May 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical flats in Kirkby Stephen with a long lease were valued about £206,200. The mid-range ground rent payable was £60 collected per annum. The lease terminated on 10 October 2081. Considering the 56 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus legals.
Last Autumn we were called by Dr Lucas Hill , who moved into a garden flat in Kirkby Stephen in July 1998. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical residencies in Kirkby Stephen with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 collected per annum. The lease finished on 28 June 2101. Taking into account 76 years remaining we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.