It’s an underpublicised certainty that a Darton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Darton property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Darton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold properties in Darton with over 100 years remaining on the lease are often regarded as a ‘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 reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Darton can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Darton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Noah, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Darton. In buying his flat twenty years previously, the lease term was of little relevance. by good luck, he became aware that he needed to take action soon on Extending the lease. Noah arranged for a lease extension just under the wire last April. Noah and the freeholder via the managing agents ultimately settled on sum of £5,500 . If the lease had slid to less than 80 years, the amount would have escalated by a minimum £900.
Last February we were approach by Ms Ellie Lewis , who took over the lease of a purpose-built apartment in Darton in October 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative premises in Darton with an extended lease were worth £267,600. The mid-range ground rent payable was £65 invoiced per annum. The lease finished in 2093. Considering the 67 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus costs.
Last year we were approach by Mrs Caitlin Moore , who purchased a garden flat in Darton in July 2002. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Similar flats in Darton with a long lease were in the region of £206,200. The average ground rent payable was £55 collected every twelve months. The lease finished in 2082. Taking into account 56 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.