For those whose Dronfield flat is held on a long lease, the message is clear – if no remedial action is taken, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Dronfield can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor 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 Dronfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Eliot, came perilously close to the 80-year threshold with the lease on his basement apartment in Dronfield. Having bought his flat twenty years ago, the length of the lease was of minimal bearing. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Eliot was able to extend his lease just ahead of time last April. Eliot and the freeholder via the managing agents eventually agreed on a premium of £6,000 . If the lease had gone below eighty years, the premium would have become more exhorbitant by at least £1,050.
Last November we were e-mailed by Mr F Robinson , who purchased a basement flat in Dronfield in January 1996. The question was if we could estimate the premium could be for a ninety year lease extension. Similar homes in Dronfield with an extended lease were valued around £233,200. The mid-range amount of ground rent was £60 billed quarterly. The lease expired on 4 April 2086. Given that there were 61 years remaining we calculated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 plus expenses.
Mr and Mrs. L Martin moved into a ground floor flat in Dronfield in March 2008. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable homes in Dronfield with an extended lease were valued about £171,800. The mid-range ground rent payable was £55 invoiced annually. The lease came to a finish on 23 April 2075. Given that there were 50 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus legals.