When it comes to domestic leasehold property in Doncaster, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Residents in Doncaster with a lease nearing 81 years left should seriously think of extending it sooner rather than later. When a lease has less than 80 years remaining, under the current legislation the landlord can calculate and demand a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Doncaster with over one hundred years outstanding 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
The lawyers that we work with undertake Doncaster lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Theo owned a 2 bedroom flat in Doncaster on the market with a lease of a little over fifty eight years left. Theo on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Theo to invoke his statutory right. Theo procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2013 we were phoned by Mrs F Rogers who, having bought a first floor apartment in Doncaster in November 2005. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative premises in Doncaster with a long lease were valued about £242,600. The average amount of ground rent was £45 collected per annum. The lease concluded in 2092. Taking into account 67 years unexpired we calculated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including professional charges.
Mrs R Flores owned a studio flat in Doncaster in October 2005. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative flats in Doncaster with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease termination date was in 2103. Taking into account 78 years remaining we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.