Unfortunately that a Dersingham residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Dersingham property market.Once your lease gets to 85ish years, you should 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 slips below 80 years - otherwise a higher premium will be due. The majority of flat owners in Dersingham will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a freeholder in Dersingham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dersingham valuers.
Two years ago Connor, came precariously near to the eighty-year threshold with the lease on his purpose- built apartment in Dersingham. Having purchased his property 19 years previously, the lease term was of little significance. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Connor extended the lease just under the wire last July. Connor and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If he had missed the deadline, the premium would have gone up by at least £975.
Mr and Mrs. K Adams took over the lease of a one bedroom apartment in Dersingham in October 2006. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparative homes in Dersingham with a long lease were worth £232,800. The average amount of ground rent was £45 collected annually. The lease elapsed on 5 August 2090. Having 65 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.
Mr M White took over the lease of a one bedroom apartment in Dersingham in August 2005. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Similar properties in Dersingham with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 billed quarterly. The lease expired in 2101. Given that there were 76 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.