Unfortunately that a Castle Donington residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Castle Donington property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term drops below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Castle Donington will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Castle Donington with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Engaging our service will provide you enhanced control over the value of your Castle Donington leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the landlord of her first floor apartment in Castle Donington, Francesca initiated the lease extension process just as her lease was approaching the all-important 80-year mark. The legal work was concluded in February 2008. The landlord’s charges were kept to an absolute minimum.
Dr Connor Garcia completed a ground floor apartment in Castle Donington in April 2005. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Identical flats in Castle Donington with a long lease were worth £198,800. The mid-range amount of ground rent was £55 collected monthly. The lease lapsed on 4 January 2081. Considering the 55 years outstanding we estimated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including expenses.
In 2010 we were called by Mrs U Morris who, having moved into a purpose-built apartment in Castle Donington in March 2001. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Similar properties in Castle Donington with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £50 collected per annum. The lease expiry date was on 2 March 2101. Having 75 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.