The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Darwen have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Please give careful consideration before delaying your Darwen lease extension. Shelving the costs now simply escalates the premium you will ultimately be required to pay for a lease extension.
Leasehold premises in Darwen with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Darwen,the lease extension experts 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 Darwen valuers.
Eliot was the the leasehold proprietor of a 2 bedroom flat in Darwen being sold with a lease of a little over 61 years outstanding. Eliot informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Eliot to exercise his statutory right. Eliot procured expert advice and secured satisfactory deal without going to tribunal and sell the property.
In 2011 we were called by Mr and Mrs. T Roux who, having acquired a first floor flat in Darwen in August 1998. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar residencies in Darwen with an extended lease were valued about £218,000. The mid-range ground rent payable was £45 billed quarterly. The lease ended in 2089. Taking into account 63 years remaining we calculated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of expenses.
Last Christmas we were phoned by Dr Caleb Kelly , who acquired a one bedroom flat in Darwen in June 2009. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Darwen with an extended lease were valued about £265,000. The average amount of ground rent was £55 billed monthly. The lease ran out on 26 February 2100. Having 74 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.