With a long leasehold premises in Darwen, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Leasehold owners in Darwen with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has under 80 years outstanding, under the current statute the landlord is entitled to calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
| 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. |
Using our service gives you increased control over the value of your Darwen leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Samuel was the the leasehold proprietor of a conversion flat in Darwen on the market with a lease of just over 61 years outstanding. Samuel informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Samuel to invoke his statutory right. Samuel obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
In 2012 we were approached by Mrs Rachael Morel who, having moved into a garden flat in Darwen in July 1995. We are asked if we could estimate the price could be for a ninety year lease extension. Similar premises in Darwen with 100 year plus lease were worth £242,600. The average ground rent payable was £45 invoiced per annum. The lease ended on 3 June 2093. Given that there were 67 years unexpired we approximated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of professional charges.
In 2010 we were contacted by Mr N Lewis who, having acquired a one bedroom apartment in Darwen in November 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Similar homes in Darwen with an extended lease were valued around £280,000. The mid-range ground rent payable was £55 billed monthly. The lease finished on 20 June 2104. Taking into account 78 years unexpired we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.