As the length of the unexpired term of a Castle Donington residential lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years unexpired 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 main rational as to why you should extend the lease without delay. Many flat owners in Castle Donington will qualify for this right; nevertheless a lawyer will be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Castle Donington with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service gives you increased control over the value of your Castle Donington leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Adam, came precariously close to the eighty-year threshold with the lease on his garden apartment in Castle Donington. Having purchased his flat two decades ago, the length of the lease was of no interest. As luck would have it, he recognised he needed to take action soon on a lease extension. Adam was able to extend his lease just ahead of time last April. Adam and the landlord in the end agreed on sum of £5,500 . If the lease had descended to less than 80 years, the sum would have gone up by at least £1,000.
Last Winter we were phoned by Dr Abbie King , who moved into a ground floor flat in Castle Donington in September 2012. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Identical residencies in Castle Donington with 100 year plus lease were in the region of £235,600. The average amount of ground rent was £60 invoiced annually. The lease concluded on 17 August 2087. Given that there were 62 years remaining we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.
Last Christmas we were e-mailed by Mr and Mrs. C Thompson , who completed a one bedroom apartment in Castle Donington in June 2005. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Identical flats in Castle Donington with an extended lease were valued around £174,200. The average ground rent payable was £55 billed per annum. The lease terminated on 7 March 2076. Having 51 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including costs.