When it comes to residential leasehold premises in Danescourt, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are less than 80 years remaining. Residents in Danescourt with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once a lease has under 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Danescourt,the lease extension solicitors that we work with will always be willing 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.
After protracted discussions with the freeholder of her garden apartment in Danescourt, Zoe initiated the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The transaction was finalised in August 2012. The freeholder’s charges were kept to an absolute minimum.
Dr F Ricardo owned a ground floor flat in Danescourt in February 1999. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable premises in Danescourt with an extended lease were worth £184,000. The mid-range ground rent payable was £55 invoiced per annum. The lease elapsed on 14 November 2077. Taking into account 53 years left we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.
In 2009 we were phoned by Dr Caleb Khan who, having completed a studio flat in Danescourt in June 2003. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable homes in Danescourt with an extended lease were worth £290,000. The average amount of ground rent was £45 invoiced yearly. The lease ended in 2097. Considering the 73 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.