As the the remaining lease term of a Debenham residential lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner rather than later. Many flat owners in Debenham will meet the qualifying criteria; that being said a conveyancing solicitor should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Lease extensions in Debenham can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 procuring Debenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted negotiations with the landlord of her purpose-built flat in Debenham, Jodie initiated the lease extension process just as her lease was nearing the critical 80-year threshold. The transaction completed in March 2007. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. N Davies purchased a one bedroom flat in Debenham in April 2012. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparative residencies in Debenham with 100 year plus lease were in the region of £191,400. The mid-range amount of ground rent was £55 billed annually. The lease end date was on 12 October 2080. Taking into account 54 years left we calculated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 plus fees.
In 2012 we were approached by Mr and Mrs. U Carter who, having took over the lease of a one bedroom flat in Debenham in November 2001. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable homes in Debenham with a long lease were worth £295,000. The average ground rent payable was £45 collected per annum. The lease concluded on 8 August 2100. Taking into account 74 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.