Delabole 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 Delabole tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Delabole you would be well advised to see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Delabole leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay
Leasehold residencies in Delabole with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Delabole,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Delabole valuers.
Subsequent to lengthy correspondence with the freeholder of her studio apartment in Delabole, Erin initiated the lease extension process as the 80 year deadline was quickly nearing. The legal work was finalised in November 2010. The freeholder’s fees were kept to an absolute minimum.
Dr Toby Brown owned a newly refurbished apartment in Delabole in May 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Delabole with an extended lease were worth £275,000. The average amount of ground rent was £45 invoiced quarterly. The lease concluded on 13 February 2095. Having 69 years left we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.
Last Summer we were approach by Mrs I Martin , who moved into a one bedroom apartment in Delabole in February 2000. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Delabole with a long lease were in the region of £216,000. The average ground rent payable was £60 collected per annum. The lease terminated on 15 March 2084. Taking into account 58 years left we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.