City of Darlington leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be due. Flat owners in City of Darlington will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in City of Darlington can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with City of Darlington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Henry, started to get near to the 80-year mark with the lease on his ground floor flat in City of Darlington. Having purchased his flat 18 years ago, the lease term was of minimal significance. Thankfully, he recognised he would imminently be paying an escalated premium for Extending the lease. Henry arranged for a lease extension just under the wire in June. Henry and the landlord subsequently agreed on a premium of £5,000 . If he had missed the deadline, the figure would have become more exhorbitant by at least £900.
Ms Aimee Gómez acquired a studio apartment in City of Darlington in February 2012. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical premises in City of Darlington with an extended lease were in the region of £260,000. The average ground rent payable was £50 invoiced monthly. The lease elapsed on 22 May 2098. Considering the 73 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
In 2013 we were called by Mrs T Laurent who, having owned a one bedroom apartment in City of Darlington in March 2000. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar residencies in City of Darlington with 100 year plus lease were valued around £264,000. The mid-range amount of ground rent was £60 billed quarterly. The lease came to a finish in 2078. Having 53 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 not including professional charges.