When it comes to residential leasehold premises in Downham, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Residents in Downham with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has fewer than eighty years outstanding, under the relevant legislation the freeholder can calculate and charge a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Downham with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Downham can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 Downham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy negotiations with the freeholder of her purpose-built apartment in Downham, Yasmin commenced the lease extension process as the 80 year deadline was quickly coming. The legal work was finalised in May 2008. The freeholder’s fees were negotiated to below 650 pounds.
In 2014 we were contacted by Dr Edward Johnson who, having owned a purpose-built flat in Downham in October 2012. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar homes in Downham with an extended lease were in the region of £208,600. The mid-range ground rent payable was £60 collected per annum. The lease lapsed on 11 February 2081. Taking into account 57 years remaining we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Downham residence is Ravensbourne Lodge 4 Highland Road in February 2013. the Tribunal held that the amount payable for the freehold was £22,268