Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Daventry. Clearly, the length of lease left shortens as time goes by. This is often overlooked and only raises itself as an issue when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Daventry have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Please give due consideration before delaying your Daventry lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
Leasehold residencies in Daventry with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Daventry lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Mason was the the leasehold proprietor of a conversion flat in Daventry on the market with a lease of fraction over 61 years remaining. Mason informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Mason to invoke his statutory right. Mason obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Last Summer we were approach by Ms H Leroy , who took over the lease of a one bedroom apartment in Daventry in April 2001. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Similar properties in Daventry with a long lease were in the region of £176,200. The average amount of ground rent was £65 collected monthly. The lease ended in 2082. Considering the 56 years left we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of costs.
Last Summer we were approach by Dr M Simon , who owned a ground floor flat in Daventry in September 2001. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative flats in Daventry with 100 year plus lease were valued about £237,600. The mid-range ground rent payable was £45 billed every twelve months. The lease termination date was in 2093. Having 67 years remaining we calculated the premium to the landlord to extend the lease to be between £11,400 and £13,200 plus costs.