It’s an underpublicised certainty that a Darwen residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Darwen property prices.Once your lease nears 85ish years, you should start considering 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 eighty years - otherwise a higher amount will be payable. Most leasehold owners in Darwen will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Darwen can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge procuring Darwen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
John owned a conversion flat in Darwen being marketed with a lease of fraction over 72 years remaining. John on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were John to invoke his statutory right. John obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2010 we were contacted by Mr and Mrs. R Smith who, having was assigned a lease of a purpose-built flat in Darwen in November 2010. We are asked if we could approximate the price could be for a ninety year lease extension. Identical premises in Darwen with a long lease were valued around £200,800. The average ground rent payable was £65 collected quarterly. The lease expiry date was in 2085. Taking into account 60 years outstanding we calculated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 not including professional charges.
In 2014 we were phoned by Dr M Richardson who, having took over the lease of a recently refurbished flat in Darwen in March 2011. The question was if we could approximate the premium would be to prolong the lease by an additional years. Identical premises in Darwen with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease lapsed on 5 July 2096. Given that there were 71 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.