Danescourt leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Danescourt will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some cases you may not be entitled. There are prescribed deadlines and steps to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The lawyers 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 conveyancing solicitor we work with provide it.
In 2014 Mason, started to get near to the 80-year threshold with the lease on his basement apartment in Danescourt. Having bought his property 19 years ago, the length of the lease was of no concern. As luck would have it, he recognised he would imminently be paying an inflated amount for Extending the lease. Mason extended the lease at the eleventh hour last August. Mason and the landlord subsequently settled on a premium of £5,000 . If he had missed the deadline, the figure would have increased by at least £1,150.
Last Spring we were contacted by Dr John François , who took over the lease of a studio flat in Danescourt in June 1998. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative premises in Danescourt with an extended lease were in the region of £257,800. The average ground rent payable was £65 collected per annum. The lease ended in 2091. Given that there were 65 years left we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of fees.
In 2014 we were e-mailed by Dr Gabriel Cox who, having took over the lease of a studio apartment in Danescourt in August 2003. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical residencies in Danescourt with an extended lease were worth £191,400. The average amount of ground rent was £55 invoiced yearly. The lease elapsed on 10 August 2080. Taking into account 54 years outstanding we calculated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of expenses.