Unfortunately that a Driffield residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Driffield property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be due. Most flat owners in Driffield will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Driffield can be a difficult process. We recommend you get 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 procuring Driffield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Luca, came perilously close to the 80-year threshold with the lease on his ground floor flat in Driffield. In buying his home two decades ago, the lease term was of minimal relevance. Fortunately, he recognised he would imminently be paying an inflated amount for a lease extension. Luca extended the lease just in the nick of time in May. Luca and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If the lease had slid lower than eighty years, the premium would have gone up by a minimum £1,100.
Last Christmas we were phoned by Mr L Simon , who bought a first floor flat in Driffield in January 1996. The question was if we could approximate the price would be to prolong the lease by 90 years. Comparable homes in Driffield with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 invoiced quarterly. The lease finished in 2079. Having 54 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of costs.
Last July we were approach by Dr Archie Carter , who acquired a one bedroom flat in Driffield in May 2004. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Identical homes in Driffield with an extended lease were in the region of £227,800. The mid-range ground rent payable was £45 collected every twelve months. The lease end date was on 14 September 2090. Given that there were 65 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.