The only way is down when it comes to Dereham lease terms. Dereham flats that have a remaining term shorter than 80 years will drop in market price at a rapid rate, and the cost of extending your lease will go up.
Leasehold properties in Dereham with over one hundred 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Dereham can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Dereham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the landlord of her purpose-built apartment in Dereham, Shannon started the lease extension process as the eighty year threshold was quickly nearing. The legal work completed in April 2011. The landlord’s costs were kept to an absolute minimum.
Last November we were called by Mr and Mrs. M Kelly , who took over the lease of a ground floor flat in Dereham in June 1999. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical flats in Dereham with a long lease were worth £242,600. The average ground rent payable was £45 collected yearly. The lease ran out on 9 October 2093. Considering the 67 years left we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including legals.
In 2014 we were phoned by Mrs Louise Morel who, having purchased a ground floor apartment in Dereham in January 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable premises in Dereham with an extended lease were worth £280,000. The mid-range ground rent payable was £55 invoiced yearly. The lease came to a finish in 2104. Given that there were 78 years unexpired we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.