It’s an underpublicised truth that a Doncaster residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Doncaster property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining falls under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Doncaster will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Doncaster with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your Doncaster leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Finn was the the leasehold owner of a conversion apartment in Doncaster being sold with a lease of fraction over 59 years left. Finn on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Finn to exercise his statutory right. Finn procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Dr V Brown acquired a purpose-built flat in Doncaster in June 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Identical premises in Doncaster with 100 year plus lease were worth £254,200. The mid-range ground rent payable was £60 collected quarterly. The lease concluded on 8 August 2077. Having 51 years unexpired we calculated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 not including fees.
In 2009 we were contacted by Dr Imogen Bell who, having bought a studio apartment in Doncaster in June 2002. The question was if we could estimate the price would be for a ninety year lease extension. Similar homes in Doncaster with an extended lease were in the region of £210,600. The mid-range ground rent payable was £45 collected quarterly. The lease came to a finish in 2088. Having 62 years left we approximated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of fees.