When it comes to long leasehold property in Daventry, you are actually buying a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Residents in Daventry with a lease drawing near to 81 years left should seriously consider extending it sooner than later. When a lease has below eighty years left, under the relevant statute the freeholder is entitled to calculate and charge a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Lease extensions in Daventry can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Daventry lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Jack, came dangerously close to the 80-year mark with the lease on his one bedroom flat in Daventry. Having bought his home two decades ago, the length of the lease was of no significance. Thankfully, he became aware that he would soon be paying an inflated amount for a lease extension. Jack arranged for a lease extension at the eleventh hour in May. Jack and the freeholder via the management company eventually settled on sum of £6,000 . If the lease had gone to less than 80 years, the figure would have escalated by a minimum £975.
Mr and Mrs. G Miller completed a recently refurbished flat in Daventry in October 2001. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Similar properties in Daventry with a long lease were in the region of £218,000. The average ground rent payable was £45 billed quarterly. The lease concluded on 19 May 2088. Taking into account 63 years outstanding we calculated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 plus legals.
Dr Mia Roux owned a first floor apartment in Daventry in November 2008. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Similar homes in Daventry with a long lease were valued about £265,000. The average ground rent payable was £50 invoiced every twelve months. The lease expired in 2099. Considering the 74 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.