On the balance of probabilities if you own a flat in Darnall you actually own a long leasehold interest over your property
Leasehold premises in Darnall with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Darnall,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Darnall valuers.
During the course of the last few months Jonathan, came very near to the eighty-year mark with the lease on his purpose- built flat in Darnall. In buying his property two decades ago, the length of the lease was of little importance. As luck would have it, he noticed he would imminently be paying way over the odds for Extending the lease. Jonathan extended the lease just ahead of time in September. Jonathan and the freeholder in the end settled on an amount of £5,500 . If he not met the deadline, the sum would have become more costly by a minimum £950.
Mr and Mrs. Y Díaz moved into a one bedroom flat in Darnall in April 1998. We are asked if we could estimate the premium could be for a ninety year lease extension. Identical properties in Darnall with an extended lease were valued about £256,600. The average ground rent payable was £60 invoiced quarterly. The lease ended on 19 March 2077. Taking into account 52 years as a residual term we calculated the premium to the landlord for the lease extension to be between £39,000 and £45,000 plus expenses.
Dr Hugo Fournier completed a one bedroom flat in Darnall in January 1997. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in Darnall with 100 year plus lease were valued about £218,000. The mid-range ground rent payable was £45 billed monthly. The lease lapsed on 8 June 2088. Taking into account 63 years outstanding we approximated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 plus fees.