When it comes to domestic leasehold property in Deepcar, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Anyone in Deepcar with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. Once a lease has below 80 years remaining, under the current statute the freeholder is entitled to calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Deepcar with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate 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; |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Deepcar can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Deepcar lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jackson was the the leasehold owner of a high value flat in Deepcar being sold with a lease of a few days over fifty eight years outstanding. Jackson on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
In 2010 we were phoned by Mr and Mrs. L Mitchell who, having purchased a one bedroom flat in Deepcar in April 2012. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparative premises in Deepcar with a long lease were in the region of £261,600. The mid-range amount of ground rent was £60 invoiced quarterly. The lease expired on 13 July 2077. Considering the 52 years remaining we approximated the premium to the landlord to extend the lease to be between £39,000 and £45,000 exclusive of costs.
Last Winter we were e-mailed by Dr L Jones , who moved into a garden apartment in Deepcar in November 2007. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable premises in Deepcar with 100 year plus lease were worth £218,000. The average ground rent payable was £45 invoiced quarterly. The lease concluded on 3 March 2088. Taking into account 63 years outstanding we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 plus expenses.