When it comes to domestic leasehold property in Dinnington, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Anyone in Dinnington with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When the lease term has below eighty years remaining, under the current statute the freeholder can calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Dinnington with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Dinnington,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dinnington valuers.
Following unsuccessful negotiations with the landlord of her one bedroom flat in Dinnington, Victoria started the lease extension process just as her lease was nearing the critical eighty-year threshold. The transaction completed in February 2012. The landlord’s costs were restricted to about six hundred pounds.
Dr Mason Bell purchased a ground floor flat in Dinnington in November 1999. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative properties in Dinnington with 100 year plus lease were valued around £198,800. The average amount of ground rent was £55 billed quarterly. The lease concluded on 26 July 2080. Having 55 years unexpired we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus fees.
In 2012 we were contacted by Mrs W Harris who, having bought a purpose-built flat in Dinnington in November 2011. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparative residencies in Dinnington with a long lease were worth £300,000. The average ground rent payable was £50 invoiced quarterly. The lease came to a finish on 2 August 2100. Given that there were 75 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.