Danescourt leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Danescourt enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Danescourt you must investigate if your lease has between 70 and 90 years left. There are good reasons why a Danescourt flat owner with a lease having around eighty years remaining should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Danescourt with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Coventry Building Society | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 freeholder in Danescourt,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Danescourt valuers.
Last year Logan, started to get close to the 80-year mark with the lease on his basement flat in Danescourt. Having purchased his property two decades ago, the unexpired term was of minimal importance. by good luck, he noticed he would imminently be paying way over the odds for Extending the lease. Logan extended the lease just ahead of time last June. Logan and the landlord who owned the flat above in the end settled on sum of £5,500 . If he not met the deadline, the price would have gone up by at least £1,050.
In 2013 we were called by Mr and Mrs. Y Ricardo who, having moved into a one bedroom apartment in Danescourt in March 2002. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar premises in Danescourt with an extended lease were valued around £166,800. The mid-range amount of ground rent was £50 billed monthly. The lease end date was in 2076. Given that there were 50 years remaining we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of costs.
Last Christmas we were called by Mr and Mrs. N Williams , who purchased a basement flat in Danescourt in January 2007. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative residencies in Danescourt with an extended lease were worth £280,000. The average amount of ground rent was £45 invoiced yearly. The lease terminated on 21 June 2096. Taking into account 70 years as a residual term we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.