Chances are that if you own a flat in Derby you actually own a long leasehold interest over your property
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Derby,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Derby valuers.
Last year Felix, started to get near to the 80-year mark with the lease on his leasehold flat in Derby. Having bought his home twenty years previously, the unexpired term was of minimal relevance. Luckily, he realised he needed to take action soon on Extending the lease. Felix was able to extend his lease at the eleventh hour last June. Felix and the freeholder via the managing agents eventually settled on an amount of £5,000 . If he not met the deadline, the sum would have increased by a minimum £875.
Mrs D Clark purchased a purpose-built flat in Derby in February 2001. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical residencies in Derby with a long lease were in the region of £270,000. The average ground rent payable was £55 billed yearly. The lease elapsed on 9 May 2099. Taking into account 74 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
Dr Y Martínez moved into a newly refurbished flat in Derby in October 1996. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparable residencies in Derby with a long lease were valued around £166,400. The average amount of ground rent was £60 billed quarterly. The lease came to a finish in 2079. Considering the 54 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus professional charges.