The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in City of Darlington can extend the lease for an additional 90 years under legislation. Please think carefully before delaying your City of Darlington lease extension. Shelving that expense now simply escalates the price you will eventually have to pay for a lease extension.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in City of Darlington,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with City of Darlington valuers.
In 2014 Ali, came very close to the 80-year mark with the lease on his studio flat in City of Darlington. Having bought his property 18 years ago, the unexpired term was of no interest. by good luck, he realised he would imminently be paying an inflated amount for Extending the lease. Ali was able to extend his lease just under the wire in January. Ali and the landlord in the end settled on the final figure of £6,000 . If he not met the deadline, the amount would have increased by a minimum £975.
Last Summer we were contacted by Mrs I Norbert , who was assigned a lease of a one bedroom apartment in City of Darlington in October 2012. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar premises in City of Darlington with an extended lease were valued around £235,200. The average amount of ground rent was £45 collected quarterly. The lease ended in 2091. Given that there were 66 years unexpired we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.
Dr Abigail Kelly took over the lease of a studio flat in City of Darlington in August 1995. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable homes in City of Darlington with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease lapsed in 2102. Taking into account 77 years outstanding we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of fees.