Delabole leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Delabole will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Delabole with in excess of 100 years left 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Yorkshire Building Society |
The lawyers that we work with procure Delabole lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In recent months Eliot, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in Delabole. Having purchased his property two decades ago, the length of the lease was of no concern. Luckily, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Eliot was able to extend his lease just under the wire in May. Eliot and the freeholder in the end agreed on a premium of £6,000 . If he had missed the deadline, the amount would have increased by a minimum £1,050.
Last Summer we were called by Mr and Mrs. Y Leroy , who took over the lease of a one bedroom apartment in Delabole in February 2007. The dilemma was if we could estimate the price would be to prolong the lease by 90 years. Identical premises in Delabole with a long lease were valued around £267,600. The average amount of ground rent was £65 invoiced annually. The lease came to a finish in 2093. Taking into account 67 years as a residual term we estimated the premium to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of fees.
In 2014 we were phoned by Mr E Morel who, having owned a one bedroom flat in Delabole in June 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Identical flats in Delabole with a long lease were worth £201,200. The average ground rent payable was £55 invoiced yearly. The lease concluded in 2082. Taking into account 56 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including costs.