Doncaster leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Doncaster tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Doncaster you would be well advised to check if your lease has between seventy and ninety years left. There are compelling reasons why a Doncaster flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
Leasehold residencies in Doncaster with in excess of 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Doncaster can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in this area.
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 dealing with Doncaster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Jayden, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Doncaster. In buying his property two decades ago, the unexpired term was of little relevance. As luck would have it, he realised he needed to take action soon on a lease extension. Jayden was able to extend his lease just ahead of time in April. Jayden and the freeholder via the management company ultimately agreed on an amount of £6,000 . If he failed to meet the deadline, the price would have gone up by a minimum £875.
Mr G Mercier moved into a purpose-built flat in Doncaster in March 2001. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable flats in Doncaster with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced per annum. The lease ended in 2085. Given that there were 60 years as a residual term we calculated the premium to the landlord for the lease extension to be between £20,900 and £24,200 not including costs.
Last April we were called by Mr and Mrs. P Moore , who bought a one bedroom apartment in Doncaster in August 2001. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Similar flats in Doncaster with a long lease were valued about £260,000. The average amount of ground rent was £50 billed annually. The lease came to a finish on 26 July 2096. Given that there were 71 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.