There is no doubt about it a leasehold flat or house in Danescourt is a wasting asset as a result of the shortening lease. If the lease has, beyond 125 years to run then this decrease may be fractional however there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. The majority of flat owners in Danescourt will meet the qualifying criteria; however a conveyancing solicitor will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Danescourt lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jasper was the the leasehold proprietor of a conversion apartment in Danescourt on the market with a lease of fraction over sixty years left. Jasper on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jasper to exercise his statutory right. Jasper obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
In 2010 we were e-mailed by Dr B Roberts who, having was assigned a lease of a studio apartment in Danescourt in June 2008. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Identical residencies in Danescourt with a long lease were worth £240,600. The mid-range ground rent payable was £60 invoiced monthly. The lease lapsed in 2088. Given that there were 62 years left we calculated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of professional charges.
In 2014 we were phoned by Mr and Mrs. C White who, having was assigned a lease of a studio apartment in Danescourt in August 2005. The question was if we could approximate the premium would be to extend the lease by ninety years. Comparative residencies in Danescourt with a long lease were valued around £174,200. The average amount of ground rent was £55 billed annually. The lease expired in 2077. Taking into account 51 years left we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus professional charges.