Darley Abbey Lease Extension - Free Consultation

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Main reasons to start your Darley Abbey lease extension


Main reasons to commence your Darley Abbey lease extension today:

A Darley Abbey lease depreciates with the years remaining on the lease.

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.

Darley Abbey property with a lease extension has roughly the same value as a freehold

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.

Lending institutions may not grant a mortgage on a short lease

The trend since 2008 has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically mortgage companies would lend on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

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.

Get in touch with one of our Darley Abbey lease extension solicitors or enfranchisement solicitors

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.

Darley Abbey Lease Extension Example Cases:

Eleanor, Darley Abbey, Derbyshire,

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.

Darley Abbey case:

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.

Darley Abbey case:

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.