For those whose City of Darlington property is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 solicitors that we work with will always be prepared 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.
Luca was the the leasehold proprietor of a conversion apartment in City of Darlington on the market with a lease of fraction over 72 years remaining. Luca on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Luca to exercise his statutory right. Luca procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Last month we were e-mailed by Mr and Mrs. Y Peterson , who moved into a garden flat in City of Darlington in August 1999. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Similar properties in City of Darlington with an extended lease were valued around £280,000. The average ground rent payable was £55 collected annually. The lease finished in 2103. Taking into account 78 years unexpired we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.
Dr P Harris acquired a basement flat in City of Darlington in April 2011. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Comparative flats in City of Darlington with an extended lease were valued about £186,000. The average amount of ground rent was £65 billed every twelve months. The lease ran out in 2083. Given that there were 58 years outstanding we calculated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of legals.