Darley Abbey leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Darley Abbey will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and steps to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Darley Abbey can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 Darley Abbey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jackson was the the leasehold owner of a conversion flat in Darley Abbey on the market with a lease of just over 61 years left. Jackson on an informal basis spoke with his freeholder a well known London-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 £50 yearly. No ground rent would be due on a lease extension were Jackson to invoke his statutory right. Jackson procured expert advice and was able to make an informed decision and deal with the matter and sell the flat.
In 2010 we were phoned by Mrs N Díaz who, having took over the lease of a first floor apartment in Darley Abbey in March 1995. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable premises in Darley Abbey with 100 year plus lease were in the region of £243,000. The average amount of ground rent was £65 collected annually. The lease terminated in 2087. Considering the 63 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of fees.
In 2011 we were contacted by Mr and Mrs. C Miller who, having bought a studio flat in Darley Abbey in January 2004. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Darley Abbey with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 billed per annum. The lease elapsed in 2076. Having 52 years outstanding we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus expenses.