Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Castle Donington. Clearly, the period of lease left shortens over time. This is often overlooked and only becomes a problem when the property has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Castle Donington have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give careful deliberation before putting off your Castle Donington lease extension. Holding off the cost now simply increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 get guidance from a conveyancing solicitor and valuer with experience in this area.
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.
After unsuccessful negotiations with the freeholder of her first floor apartment in Castle Donington, Rhiannon commenced the lease extension process as the eighty year mark was fast approaching. The transaction was finalised in August 2010. The landlord’s charges were kept to an absolute minimum.
Last Winter we were contacted by Dr H Evans , who completed a basement apartment in Castle Donington in November 2009. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative flats in Castle Donington with a long lease were worth £205,000. The average amount of ground rent was £50 collected quarterly. The lease lapsed in 2105. Considering the 79 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
Last Autumn we were contacted by Dr Courtney Cox , who purchased a first floor flat in Castle Donington in May 1997. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable premises in Castle Donington with a long lease were valued about £275,000. The average amount of ground rent was £65 invoiced per annum. The lease terminated on 7 February 2094. Considering the 68 years remaining we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.