Unfortunately that a Dereham residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Dereham property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Dereham will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with procure Dereham 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 conveyancer we work with provide it.
In 2014 Ollie, started to get near to the 80-year mark with the lease on his leasehold apartment in Dereham. In buying his home twenty years previously, the unexpired term was of no relevance. Thankfully, he recognised he would imminently be paying way over the odds for Extending the lease. Ollie arranged for a lease extension just under the wire last August. Ollie and the freeholder ultimately agreed on an amount of £5,500 . If the lease had descended to less than 80 years, the amount would have gone up by at least £1,075.
Mr and Mrs. W Campbell took over the lease of a studio apartment in Dereham in November 1996. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical properties in Dereham with 100 year plus lease were worth £168,800. The mid-range ground rent payable was £60 collected quarterly. The lease expired on 8 May 2081. Considering the 55 years outstanding we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including costs.
Last year we were approach by Dr Hollie Nelson , who acquired a studio apartment in Dereham in June 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Dereham with 100 year plus lease were valued about £235,200. The mid-range ground rent payable was £45 collected monthly. The lease expired in 2092. Given that there were 66 years unexpired we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.