There is no doubt about it a leasehold flat or house in Duffield is a wasting asset as a result of the diminishing lease term. If the lease has, over 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Duffield will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Duffield,the lease extension lawyers 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 Duffield valuers.
Half a year ago Ben, came critically near to the 80-year mark with the lease on his first floor apartment in Duffield. Having bought his property twenty years previously, the length of the lease was of no interest. As luck would have it, he noticed he would soon be paying an inflated amount for a lease extension. Ben arranged for a lease extension at the eleventh hour last August. Ben and the landlord subsequently settled on the final figure of £6,000 . If the lease had descended lower than eighty years, the price would have become more exhorbitant by at least £1,125.
Dr C Dupont purchased a one bedroom flat in Duffield in March 2003. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable homes in Duffield with an extended lease were valued about £205,000. The average amount of ground rent was £50 collected annually. The lease came to a finish on 17 June 2104. Having 79 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.
In 2014 we were phoned by Mr Henry Clark who, having took over the lease of a studio flat in Duffield in August 2002. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Duffield with a long lease were in the region of £275,000. The average amount of ground rent was £65 billed every twelve months. The lease expired on 4 July 2093. Having 68 years unexpired we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.