When it comes to domestic leasehold premises in Downham Market, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Leasehold owners in Downham Market with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. When the lease term has under 80 years outstanding, under the current Act the freeholder can calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Downham Market,the lease extension solicitors 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 Downham Market valuers.
Off the back of unsuccessful correspondence with the landlord of her first floor flat in Downham Market, Natasha initiated the lease extension process as the eighty year mark was quickly coming. The transaction was finalised in November 2008. The freeholder’s costs were restricted to slightly above 650 GBP.
Mr and Mrs. F Khan owned a studio flat in Downham Market in February 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Identical flats in Downham Market with an extended lease were worth £176,200. The average amount of ground rent was £65 billed quarterly. The lease lapsed on 24 April 2082. Taking into account 56 years left we estimated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 plus costs.
Ms Stephanie Khan took over the lease of a basement apartment in Downham Market in July 2002. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical flats in Downham Market with a long lease were valued around £242,600. The mid-range amount of ground rent was £45 collected per annum. The lease terminated on 9 June 2093. Having 67 years left we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of fees.