Dalton in Furness leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Dalton in Furness tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Dalton in Furness you would be well advised to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Dalton in Furness with more than one hundred years unexpired on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Dalton in Furness can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in this area.
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 dealing with Dalton in Furness lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Ali, started to get close to the eighty-year mark with the lease on his one bedroom flat in Dalton in Furness. In buying his home 19 years previously, the unexpired term was of minimal concern. Fortunately, he recognised he would imminently be paying an inflated amount for a lease extension. Ali extended the lease just ahead of time last May. Ali and the freeholder via the managing agents in the end settled on the final figure of £6,000 . If he failed to meet the deadline, the amount would have gone up by at least £975.
Mr and Mrs. N Rivera moved into a studio flat in Dalton in Furness in January 1998. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative premises in Dalton in Furness with an extended lease were worth £200,000. The average ground rent payable was £50 invoiced annually. The lease came to a finish in 2103. Taking into account 77 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.
Dr B Green bought a one bedroom apartment in Dalton in Furness in May 2004. The question was if we could estimate the premium would be for a 90 year lease extension. Identical flats in Dalton in Furness with an extended lease were in the region of £265,200. The mid-range ground rent payable was £65 billed every twelve months. The lease elapsed in 2092. Having 66 years outstanding we calculated the premium to the landlord to extend the lease to be between £15,200 and £17,600 not including professional charges.