When it comes to domestic leasehold premises in Castle Donington, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years remaining. Residents in Castle Donington with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once the lease term has less than eighty years left, under the relevant legislation the landlord can calculate and levy a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 Castle Donington can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience procuring Castle Donington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months William, came seriously close to the 80-year threshold with the lease on his ground floor apartment in Castle Donington. Having purchased his home twenty years previously, the unexpired term was of no interest. Thankfully, he realised he needed to take steps soon on Extending the lease. William extended the lease at the eleventh hour in April. William and the freeholder via the management company subsequently agreed on sum of £6,000 . If he had missed the deadline, the sum would have become more costly by a minimum £1,150.
Dr Elijah Bonnet acquired a garden apartment in Castle Donington in January 2006. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable flats in Castle Donington with 100 year plus lease were valued around £208,600. The average ground rent payable was £60 invoiced yearly. The lease expired in 2083. Given that there were 57 years outstanding we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of fees.
Mr and Mrs. H Díaz was assigned a lease of a studio apartment in Castle Donington in August 1996. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Identical residencies in Castle Donington with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected monthly. The lease expired on 13 November 2103. Given that there were 77 years as a residual term we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.