With a long leasehold premises in Delabole, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Anyone in Delabole with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When the lease term has under 80 years left, under the current legislation the landlord is entitled to calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Delabole leasehold, as your property will be more valuable and marketable in respect of lease length should you wish 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.
Following unsuccessful correspondence with the freeholder of her one bedroom flat in Delabole, Anna started the lease extension process just as her lease was approaching the crucial 80-year mark. The lease extension completed in August 2007. The freeholder’s costs were restricted to slightly above 650 pounds.
Mr and Mrs. D Stewart moved into a one bedroom flat in Delabole in January 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Comparable premises in Delabole with a long lease were worth £235,600. The average amount of ground rent was £60 invoiced quarterly. The lease elapsed on 3 November 2088. Taking into account 62 years remaining we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.
In 2014 we were approached by Mr Alfie James who, having acquired a one bedroom flat in Delabole in June 1996. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparable properties in Delabole with an extended lease were in the region of £174,200. The average amount of ground rent was £55 invoiced monthly. The lease came to a finish in 2077. Having 51 years as a residual term we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including professional charges.