With a long leasehold premises in Daventry, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are less than 80 years remaining. Residents in Daventry with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has below 80 years left, under the current legislation the landlord can calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is payable.
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
Regardless of whether you are a tenant or a freeholder in Daventry,the lease extension solicitors 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 Daventry valuers.
During the course of the last few months Reuben, came seriously close to the eighty-year mark with the lease on his purpose- built apartment in Daventry. Having bought his property two decades ago, the length of the lease was of no importance. Luckily, he realised he needed to take action soon on Extending the lease. Reuben extended the lease just under the wire in April. Reuben and the freeholder via the managing agents in the end agreed on an amount of £5,500 . If the lease had slipped lower than eighty years, the price would have increased by at least £1,025.
In 2009 we were contacted by Mr Liam Robinson who, having completed a first floor apartment in Daventry in January 2003. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative homes in Daventry with an extended lease were valued about £270,000. The average amount of ground rent was £55 invoiced every twelve months. The lease came to a finish on 16 March 2100. Considering the 75 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Mr and Mrs. V Martin bought a studio apartment in Daventry in April 2006. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative properties in Daventry with an extended lease were valued around £168,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease lapsed in 2080. Considering the 55 years outstanding we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.