Desford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Desford residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Desford you really ought to see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Desford flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is put in place without delay
Leasehold residencies in Desford with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Desford can be a difficult process. We recommend you procure professional help 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 procuring Desford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jack owned a 2 bedroom apartment in Desford on the market with a lease of a little over 61 years left. Jack on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jack to exercise his statutory right. Jack obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2012 we were e-mailed by Dr Amy Lewis who, having took over the lease of a one bedroom flat in Desford in August 2004. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative premises in Desford with a long lease were valued around £208,200. The average amount of ground rent was £65 billed monthly. The lease ended in 2086. Taking into account 61 years remaining we calculated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of professional charges.
Last Winter we were phoned by Mr M Phillips , who acquired a one bedroom flat in Desford in June 2001. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Desford with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease expired on 5 May 2097. Considering the 72 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.