The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Darton may extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Darton lease extension. Postponing the costs today simply increases the premium you will ultimately be required to pay for a lease extension.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service gives you enhanced control over the value of your Darton leasehold, as your property will be more valuable and saleable in respect of 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.
Last October Caleb, came very near to the eighty-year threshold with the lease on his basement apartment in Darton. In buying his flat twenty years previously, the length of the lease was of minimal interest. As luck would have it, he became aware that he would soon be paying an escalated premium for Extending the lease. Caleb was able to extend his lease just under the wire in April. Caleb and the freeholder subsequently agreed on an amount of £6,000 . If the lease had dipped to less than 80 years, the amount would have gone up by at least £1,025.
Last Autumn we were e-mailed by Dr H Wood , who owned a garden flat in Darton in July 2006. The question was if we could approximate the price would likely be to extend the lease by 90 years. Similar homes in Darton with an extended lease were in the region of £184,000. The average ground rent payable was £55 billed annually. The lease end date was on 21 July 2078. Given that there were 53 years unexpired we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of fees.
Last Summer we were called by Ms Melissa Mason , who took over the lease of a recently refurbished apartment in Darton in July 2009. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable properties in Darton with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease lapsed in 2098. Taking into account 73 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.