As the the remaining lease term of a Dersingham domestic lease diminished so does its value and therefore the value of your property. If the lease has, beyond 125 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Dersingham will meet the qualifying criteria; nevertheless a lawyer will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Dersingham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dersingham valuers.
Benjamin owned a conversion flat in Dersingham on the market with a lease of just over 72 years left. Benjamin on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Benjamin to invoke his statutory right. Benjamin obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2014 we were approached by Dr R Evans who, having purchased a one bedroom flat in Dersingham in May 1999. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Similar residencies in Dersingham with 100 year plus lease were valued about £260,000. The mid-range amount of ground rent was £50 collected annually. The lease lapsed on 3 September 2097. Considering the 72 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Last Spring we were approach by Mr and Mrs. S Martínez , who owned a ground floor apartment in Dersingham in February 2009. The question was if we could approximate the premium would be to extend the lease by ninety years. Similar homes in Dersingham with an extended lease were valued about £261,600. The mid-range amount of ground rent was £60 collected annually. The lease lapsed in 2077. Taking into account 52 years unexpired we calculated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 exclusive of legals.