Chances are that if you own a flat in Darley Abbey you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Darley Abbey can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with 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.
Last October Harvey, started to get close to the eighty-year mark with the lease on his purpose- built apartment in Darley Abbey. Having purchased his property two decades ago, the lease term was of minimal significance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Harvey was able to extend his lease just under the wire last September. Harvey and the freeholder eventually settled on sum of £5,000 . If the lease had fallen lower than eighty years, the amount would have increased by at least £1,025.
In 2014 we were e-mailed by Mrs Caitlin Richardson who, having took over the lease of a newly refurbished apartment in Darley Abbey in April 2009. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparable flats in Darley Abbey with an extended lease were worth £250,400. The mid-range ground rent payable was £65 billed quarterly. The lease concluded on 6 October 2089. Considering the 64 years remaining we approximated the premium to the landlord for the lease extension to be within £19,000 and £22,000 not including fees.
Last month we were approach by Mr and Mrs. D Bernard , who owned a ground floor apartment in Darley Abbey in September 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Identical homes in Darley Abbey with 100 year plus lease were valued about £189,000. The mid-range amount of ground rent was £55 collected annually. The lease elapsed on 6 January 2078. Taking into account 53 years left we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including legals.