The nearer a domestic lease in Delabole nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 99 years remaining then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner as opposed to later. Many flat owners in Delabole will qualify for this right; however a lawyer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence 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. |
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Delabole lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Oliver was the the leasehold proprietor of a conversion apartment in Delabole being sold with a lease of fraction over fifty eight years left. Oliver on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Oliver to exercise his statutory right. Oliver procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
Mr and Mrs. A Williams moved into a one bedroom apartment in Delabole in August 1997. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable homes in Delabole with a long lease were valued around £208,600. The average amount of ground rent was £60 invoiced monthly. The lease elapsed on 10 November 2082. Having 57 years left we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of costs.
Dr Georgina James took over the lease of a garden apartment in Delabole in June 2002. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable residencies in Delabole with a long lease were valued about £200,000. The average ground rent payable was £50 invoiced yearly. The lease termination date was on 15 March 2102. Considering the 77 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.