The only way is down when it comes to Daventry lease terms. Daventry properties that have a remaining term fewer than 80 years will drop in market price even faster, and the cost to extend your lease will go up.
Leasehold premises in Daventry with over 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Daventry leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Muhammad, started to get near to the eighty-year mark with the lease on his first floor apartment in Daventry. In buying his home two decades ago, the length of the lease was of little interest. by good luck, he noticed he needed to take steps soon on Extending the lease. Muhammad arranged for a lease extension at the eleventh hour in September. Muhammad and the freeholder eventually settled on the final figure of £5,500 . If the lease had slid below 80 years, the premium would have become more costly by a minimum £1,100.
In 2012 we were called by Mr and Mrs. S Smith who, having completed a garden apartment in Daventry in May 2003. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Identical flats in Daventry with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced per annum. The lease elapsed on 16 February 2095. Taking into account 70 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
Last Spring we were called by Dr Gemma Gunderson , who purchased a garden apartment in Daventry in April 2012. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Comparable homes in Daventry with an extended lease were valued about £246,800. The average ground rent payable was £60 collected yearly. The lease ran out on 21 June 2075. Taking into account 50 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including expenses.