The only way is down when it comes to Derby lease terms. Derby leaseholds that have a remaining term lower than eighty years will drop in market price even faster, and the cost of extending your lease will go up.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Derby,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Derby valuers.
Last year Teddy, started to get close to the 80-year threshold with the lease on his leasehold flat in Derby. Having purchased his flat two decades ago, the length of the lease was of no importance. Luckily, he became aware that he would imminently be paying way over the odds for a lease extension. Teddy extended the lease just under the wire in August. Teddy and the landlord who owned the flat above ultimately agreed on the final figure of £5,000 . If the lease had dropped below eighty years, the amount would have gone up by a minimum £1,075.
Last month we were contacted by Dr V Edwards , who owned a first floor flat in Derby in January 2009. We are asked if we could estimate the price could be for a 90 year lease extension. Similar residencies in Derby with an extended lease were in the region of £264,000. The average ground rent payable was £60 collected every twelve months. The lease ran out in 2079. Considering the 53 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 not including legals.
In 2011 we were e-mailed by Mr and Mrs. T Laurent who, having acquired a purpose-built flat in Derby in September 1999. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative flats in Derby with a long lease were in the region of £225,400. The mid-range ground rent payable was £45 collected every twelve months. The lease came to a finish on 8 August 2090. Having 64 years remaining we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of legals.