Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Darley Abbey. Inevitably, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the property has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Darley Abbey have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do give due deliberation before putting off your Darley Abbey lease extension. Putting off the cost now simply increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as 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. |
| Coventry Building Society | 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. |
| 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. |
| 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 |
| Yorkshire 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. |
Lease extensions in Darley Abbey can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer 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 a wealth of experience 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.
14 months ago Thomas, came very near to the 80-year mark with the lease on his purpose- built apartment in Darley Abbey. Having bought his flat two decades ago, the length of the lease was of little importance. Luckily, he recognised he needed to take steps soon on a lease extension. Thomas extended the lease just in the nick of time last July. Thomas and the freeholder via the managing agents in the end agreed on an amount of £6,000 . If the lease had dipped lower than 80 years, the premium would have become more costly by a minimum £850.
Last Spring we were contacted by Ms Maisie Moreau , who took over the lease of a first floor flat in Darley Abbey in October 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Identical residencies in Darley Abbey with a long lease were in the region of £275,000. The average amount of ground rent was £65 collected annually. The lease ran out on 13 August 2093. Considering the 68 years remaining we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.
Mr B Edwards acquired a garden apartment in Darley Abbey in January 2000. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative homes in Darley Abbey with a long lease were in the region of £208,600. The mid-range ground rent payable was £60 billed monthly. The lease terminated on 10 August 2082. Having 57 years outstanding we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of expenses.