With a residential leasehold premises in Darley Abbey, you effectively rent it for a certain amount 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 consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are fewer than eighty years left. Leasehold owners in Darley Abbey with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once the lease term has under eighty years remaining, under the relevant legislation the landlord is entitled to calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
Lender | Requirement |
---|---|
Accord Mortgages | 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. |
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Halifax | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a landlord in Darley Abbey,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Darley Abbey valuers.
After lengthy discussions with the freeholder of her one bedroom flat in Darley Abbey, Eleanor started the lease extension process as the eighty year mark was fast coming. The lease extension completed in April 2012. The landlord’s charges were negotiated to below 700 GBP.
Last March we were contacted by Mr and Mrs. H Simon , who was assigned a lease of a studio apartment in Darley Abbey in January 2011. The question was if we could approximate the premium would be for a 90 year extension to my lease. Similar premises in Darley Abbey with 100 year plus lease were in the region of £208,600. The mid-range ground rent payable was £60 billed monthly. The lease concluded in 2081. Having 57 years outstanding we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus costs.
In 2009 we were called by Mr and Mrs. M Murphy who, having acquired a recently refurbished apartment in Darley Abbey in September 2006. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Comparative homes in Darley Abbey with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected annually. The lease elapsed in 2101. Having 77 years unexpired we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.