With a residential leasehold property in Dereham, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Leasehold owners in Dereham with a lease approaching 81 years remaining should seriously think of extending it sooner as opposed to later. Once the lease term has below 80 years left, under the relevant legislation the landlord is entitled to calculate and levy a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Dereham can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience 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.
In recent months Logan, started to get near to the 80-year threshold with the lease on his garden apartment in Dereham. In buying his home two decades ago, the length of the lease was of minimal interest. Thankfully, he recognised he would soon be paying an inflated amount for a lease extension. Logan extended the lease just under the wire last June. Logan and the freeholder via the managing agents subsequently settled on an amount of £5,500 . If the lease had dipped to less than eighty years, the amount would have increased by a minimum £900.
In 2014 we were approached by Mrs Lucy Ramírez who, having purchased a purpose-built apartment in Dereham in January 2001. The question was if we could estimate the premium would be for a ninety year extension to my lease. Comparative properties in Dereham with a long lease were in the region of £265,000. The average amount of ground rent was £55 collected monthly. The lease ended on 21 September 2100. Given that there were 74 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
In 2013 we were e-mailed by Ms M Mason who, having purchased a basement apartment in Dereham in November 1998. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative residencies in Dereham with a long lease were worth £166,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease lapsed in 2080. Taking into account 54 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus professional charges.