Doncaster leases on residential properties are gradually losing value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay 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 to the property. Flat owners in Doncaster will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and steps to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Using our service will provide you enhanced control over the value of your Doncaster leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Toby was the the leasehold owner of a 2 bedroom flat in Doncaster on the market with a lease of fraction over 61 years remaining. Toby informally 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 on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Toby to exercise his statutory right. Toby obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2009 we were approached by Mr and Mrs. K Martinez who, having completed a studio flat in Doncaster in February 2009. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar residencies in Doncaster with a long lease were in the region of £264,000. The average amount of ground rent was £60 invoiced yearly. The lease end date was on 25 September 2079. Having 53 years outstanding we estimated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 plus professional charges.
Last year we were contacted by Dr Katherine Edwards , who owned a newly refurbished apartment in Doncaster in July 2012. The question was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar flats in Doncaster with a long lease were valued around £225,400. The mid-range amount of ground rent was £45 collected per annum. The lease ran out on 6 August 2090. Having 64 years outstanding we estimated the premium to the landlord to extend the lease to be within £16,200 and £18,600 not including fees.