It’s an underpublicised certainty that a Dalton in Furness residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Dalton in Furness property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be payable. Most leasehold owners in Dalton in Furness will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Retaining our service will provide you enhanced 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 wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Alex owned a 2 bedroom flat in Dalton in Furness being marketed with a lease of fraction over sixty years outstanding. Alex on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Alex to exercise his statutory right. Alex obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Ms H Wright bought a newly refurbished flat in Dalton in Furness in November 2010. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Comparative premises in Dalton in Furness with a long lease were in the region of £290,000. The average amount of ground rent was £45 collected quarterly. The lease expired in 2097. Taking into account 72 years remaining we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of fees.
Last Christmas we were phoned by Dr L Hernández , who acquired a garden flat in Dalton in Furness in September 2010. We are asked if we could estimate the premium could be to extend the lease by ninety years. Similar homes in Dalton in Furness with 100 year plus lease were worth £233,200. The mid-range ground rent payable was £60 collected monthly. The lease ran out in 2086. Considering the 61 years outstanding we estimated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 not including fees.