Daventry leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Daventry tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Daventry you should check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Daventry with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Halifax | |
| Virgin |
Lease extensions in Daventry can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in this area.
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.
Last October Theo, came very close to the eighty-year mark with the lease on his purpose- built apartment in Daventry. In buying his flat two decades ago, the lease term was of no importance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Theo was able to extend his lease just ahead of time in January. Theo and the freeholder via the management company ultimately settled on the final figure of £5,000 . If he not met the deadline, the price would have gone up by a minimum £950.
Last Christmas we were approach by Dr H Mercier , who bought a purpose-built flat in Daventry in November 1998. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparative flats in Daventry with an extended lease were valued about £245,000. The mid-range ground rent payable was £45 billed annually. The lease elapsed in 2094. Taking into account 68 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.
In 2009 we were contacted by Mr Freddie Clark who, having owned a purpose-built apartment in Daventry in August 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative premises in Daventry with a long lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease concluded in 2105. Having 79 years outstanding we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including legals.