The closer a domestic lease in Darley Abbey gets to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. Many flat owners in Darley Abbey will qualify for this right; nevertheless a lawyer can confirm if you are eligible 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.
Leasehold premises in Darley Abbey with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Lease extensions in Darley Abbey can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Darley Abbey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the landlord of her studio flat in Darley Abbey, Jade initiated the lease extension process just as her lease was coming close to the all-important 80-year mark. The legal work was concluded in February 2007. The freeholder’s fees were restricted to a tad over 550 GBP.
In 2014 we were phoned by Dr Chelsea Howard who, having completed a one bedroom apartment in Darley Abbey in March 2006. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Similar premises in Darley Abbey with a long lease were valued around £200,000. The mid-range amount of ground rent was £50 collected yearly. The lease expiry date was in 2103. Considering the 77 years remaining we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.
Last Spring we were phoned by Mr and Mrs. L Phillips , who moved into a garden apartment in Darley Abbey in October 2000. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable homes in Darley Abbey with an extended lease were valued around £265,200. The average amount of ground rent was £65 billed annually. The lease ended on 25 February 2092. Given that there were 66 years unexpired we calculated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of costs.