Danescourt leases on domestic deteriorating in value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher amount will be due. Leasehold owners in Danescourt will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are prescribed deadlines and formalities to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Danescourt with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Danescourt,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Danescourt valuers.
Rory owned a conversion flat in Danescourt being sold with a lease of fraction over 72 years unexpired. Rory on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Rory to exercise his statutory right. Rory procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Mr U Kelly moved into a ground floor flat in Danescourt in August 2007. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Danescourt with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 billed per annum. The lease ran out on 10 September 2095. Given that there were 71 years remaining we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
Last Summer we were called by Mr and Mrs. G Allen , who acquired a studio flat in Danescourt in March 1998. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable homes in Danescourt with a long lease were valued about £225,800. The mid-range ground rent payable was £60 collected yearly. The lease expiry date was in 2084. Given that there were 60 years remaining we estimated the compensation to the landlord for the lease extension to be between £25,700 and £29,600 exclusive of fees.