The only way is down when it comes to Darley Abbey lease terms. Darley Abbey properties that have a remaining term lower than 80 years will reduce in market price even faster, and the cost to extend your lease will rise.
Leasehold residencies in Darley Abbey with in excess of 100 years remaining on the lease are sometimes regarded as a ‘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 service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Engaging our service will provide you enhanced control over the value of your Darley Abbey leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jack owned a conversion apartment in Darley Abbey on the market with a lease of just over fifty eight years left. Jack informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Jack to exercise his statutory right. Jack obtained expert advice and was able to make an informed decision and deal with the matter and sell the flat.
Last Spring we were called by Dr Connor Simon , who owned a garden flat in Darley Abbey in July 1995. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Comparable premises in Darley Abbey with an extended lease were worth £290,000. The average amount of ground rent was £45 invoiced per annum. The lease came to a finish in 2097. Considering the 72 years unexpired we approximated the premium to the landlord to extend the lease to be within £11,400 and £13,200 not including legals.
Last August we were called by Mr and Mrs. V Roux , who bought a one bedroom apartment in Darley Abbey in March 2006. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparative properties in Darley Abbey with 100 year plus lease were worth £233,200. The mid-range ground rent payable was £60 invoiced per annum. The lease expired in 2086. Given that there were 61 years left we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 plus expenses.