Darley Abbey Lease Extension - Free Consultation

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Why you should start your Darley Abbey lease extension

Why you should start your Darley Abbey lease extension today:

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

With a residential leasehold premises in Darley Abbey, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years left. Leasehold owners in Darley Abbey with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When a lease has below 80 years left, under the current Act the freeholder is entitled to calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.

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

It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Banks and building societies are really restricting their approach as regards to properties in Darley Abbey with short leases. For example you may find that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you needed to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus reducing your market.

Lender Requirement
Halifax Minimum 70 years from the date of the mortgage.
Leeds Building Society 85 years remaing from the start of the mortgage.
Lloyds TSB Scotland Mortgage term plus 30 years subject to an overall minimum term of 70 years
Royal Bank of Scotland Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.
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.

What makes us experts in Darley Abbey lease extensions?

Engaging our service gives you increased 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 want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Darley Abbey Lease Extension Case Studies:

Luca, Darley Abbey, Derbyshire

During the course of the last few months Luca, came perilously near to the eighty-year threshold with the lease on his one bedroom apartment in Darley Abbey. In buying his home two decades ago, the unexpired term was of minimal bearing. Luckily, he became aware that he would soon be paying an inflated amount for Extending the lease. Luca arranged for a lease extension just in the nick of time in May. Luca and the freeholder subsequently settled on the final figure of £5,000 . If he not met the deadline, the sum would have gone up by at least £1,050.

Darley Abbey case:

Last Christmas we were contacted by Mr F Ali , who bought a one bedroom apartment in Darley Abbey in November 2006. The dilemma was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative homes in Darley Abbey with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 billed yearly. The lease terminated on 6 November 2092. Considering the 71 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.

Darley Abbey case:

Last Christmas we were phoned by Ms Louise Norbert , who was assigned a lease of a one bedroom flat in Darley Abbey in April 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative premises in Darley Abbey with an extended lease were valued around £225,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease terminated on 26 July 2081. Taking into account 60 years as a residual term we estimated the premium to the landlord for the lease extension to be between £25,700 and £29,600 plus costs.