Dalton in Furness leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Dalton in Furness enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Dalton in Furness you would be well advised to investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Dalton in Furness leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
Retaining our service will provide you increased control over the value of your Dalton in Furness leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Andrew owned a 2 bedroom flat in Dalton in Furness being sold with a lease of fraction over 59 years left. Andrew on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Andrew to invoke his statutory right. Andrew obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Dr H Clarke acquired a first floor flat in Dalton in Furness in September 1995. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical flats in Dalton in Furness with an extended lease were valued about £216,000. The mid-range ground rent payable was £60 invoiced quarterly. The lease ran out on 28 April 2084. Having 58 years unexpired we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.
Last Christmas we were called by Mr and Mrs. P Brooks , who was assigned a lease of a first floor flat in Dalton in Furness in April 2002. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative properties in Dalton in Furness with an extended lease were worth £205,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease termination date was in 2104. Having 78 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.