When it comes to domestic leasehold premises in Danescourt, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years left. Anyone in Danescourt with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has below eighty years outstanding, under the relevant statute the landlord can calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Engaging our service will provide you better control over the value of your Danescourt leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ben owned a 2 bedroom apartment in Danescourt being marketed with a lease of a little over fifty eight years left. Ben on an informal basis approached his landlord a well known Bristol-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 an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ben to invoke his statutory right. Ben obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Last October we were phoned by Dr James François , who moved into a recently refurbished flat in Danescourt in May 2007. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Danescourt with an extended lease were valued about £267,600. The average amount of ground rent was £65 collected quarterly. The lease lapsed on 9 February 2093. Taking into account 67 years outstanding we approximated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus costs.
Mr and Mrs. M Gunderson owned a ground floor apartment in Danescourt in October 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar properties in Danescourt with an extended lease were in the region of £206,200. The average amount of ground rent was £55 invoiced quarterly. The lease ran out in 2082. Taking into account 56 years outstanding we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.