With a long leasehold property in City of Darlington, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are less than 80 years remaining. Residents in City of Darlington with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once a lease has less than eighty years remaining, under the current statute the landlord can calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent 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 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord 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.
Gabriel was the the leasehold proprietor of a high value apartment in City of Darlington on the market with a lease of a little over 61 years outstanding. Gabriel on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Dr B Watson acquired a newly refurbished apartment in City of Darlington in January 2012. The question was if we could estimate the premium would be for a 90 year extension to my lease. Identical residencies in City of Darlington with an extended lease were worth £166,400. The mid-range amount of ground rent was £60 invoiced monthly. The lease concluded on 20 April 2079. Given that there were 54 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus legals.
Dr Jamie Turner acquired a ground floor apartment in City of Darlington in February 1997. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in City of Darlington with an extended lease were in the region of £227,800. The average ground rent payable was £45 invoiced annually. The lease ended in 2090. Considering the 65 years as a residual term we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus costs.