The value of Delabole leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is below than 80 years
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Delabole valuers.
Arthur was the the leasehold proprietor of a high value flat in Delabole on the market with a lease of a little over fifty eight years left. Arthur informally contacted his freeholder a well known London-based freehold company for a lease extension. The landlord 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 £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Arthur to exercise his statutory right. Arthur obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2012 we were contacted by Mr and Mrs. S Norbert who, having purchased a newly refurbished apartment in Delabole in June 2006. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative homes in Delabole with a long lease were worth £300,000. The average ground rent payable was £50 billed monthly. The lease elapsed in 2101. Given that there were 76 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
Last Christmas we were contacted by Dr T Lefèvre , who completed a basement flat in Delabole in February 2004. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Comparative premises in Delabole with an extended lease were worth £252,800. The average amount of ground rent was £65 collected monthly. The lease ran out in 2090. Considering the 65 years outstanding we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including legals.