With a residential leasehold property in Derby, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Anyone in Derby with a lease approaching 81 years remaining should seriously think of extending it without delay. Once a lease has below 80 years remaining, under the relevant statute the landlord can calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Derby with over one hundred years unexpired 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 situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Derby can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
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 procuring Derby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Leo, started to get near to the eighty-year threshold with the lease on his basement flat in Derby. Having bought his flat two decades ago, the length of the lease was of minimal concern. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Leo was able to extend his lease just ahead of time in May. Leo and the freeholder via the managing agents in the end settled on the final figure of £5,500 . If he not met the deadline, the premium would have escalated by at least £925.
In 2012 we were called by Mr Jack Hill who, having moved into a one bedroom apartment in Derby in November 2012. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical properties in Derby with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 invoiced annually. The lease finished on 5 May 2103. Given that there were 77 years remaining we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
Last Winter we were approach by Mrs J Robinson , who was assigned a lease of a ground floor flat in Derby in January 1995. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical properties in Derby with an extended lease were valued about £183,600. The mid-range ground rent payable was £65 collected quarterly. The lease terminated on 18 September 2083. Given that there were 57 years remaining we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus professional charges.