Unfortunately that a Darnall residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Darnall property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be due. Most flat owners in Darnall will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a landlord in Darnall,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Darnall valuers.
Last year Noah, came perilously close to the eighty-year mark with the lease on his one bedroom apartment in Darnall. Having bought his property two decades ago, the unexpired term was of minimal interest. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Noah arranged for a lease extension just ahead of time in May. Noah and the freeholder via the managing agents in the end agreed on sum of £6,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by a minimum £1,000.
Last Summer we were phoned by Dr P Taylor , who was assigned a lease of a first floor apartment in Darnall in November 2012. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar properties in Darnall with a long lease were valued about £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease finished on 6 May 2097. Having 71 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
Ms L Peterson completed a one bedroom flat in Darnall in October 1999. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Similar homes in Darnall with a long lease were worth £254,200. The mid-range ground rent payable was £60 billed annually. The lease elapsed in 2077. Given that there were 51 years remaining we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 plus fees.