Downe leases on residential deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease falls lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Downe will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not be entitled. There are also strict timetables and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Downe,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Downe valuers.
Off the back of unsuccessful discussions with the freeholder of her two bedroom apartment in Downe, Katherine initiated the lease extension process as the eighty year mark was fast approaching. The lease extension completed in October 2013. The freeholder’s costs were kept to an absolute minimum.
Last Summer we were approach by Dr K Ricardo , who moved into a one bedroom flat in Downe in January 1995. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparative premises in Downe with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 collected per annum. The lease terminated in 2104. Taking into account 78 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.
An example of a Lease Extension matter before the tribunal for a Downe property is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case was in relation to 1 flat. The unexpired term as at the valuation date was 50.57 years.