Downham Market leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Downham Market will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some situations you may not be entitled. There are prescribed timetables and formalities to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Downham Market with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Downham Market 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.
Muhammad owned a high value flat in Downham Market being marketed with a lease of fraction over sixty years outstanding. Muhammad on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mrs Maisie André completed a basement apartment in Downham Market in January 1997. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Similar premises in Downham Market with 100 year plus lease were worth £254,200. The average ground rent payable was £60 collected monthly. The lease termination date was on 7 February 2077. Given that there were 51 years remaining we approximated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 plus costs.
Dr Elizabeth Ricardo was assigned a lease of a recently refurbished apartment in Downham Market in June 2008. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Downham Market with an extended lease were worth £210,600. The mid-range ground rent payable was £45 collected every twelve months. The lease terminated on 9 September 2088. Given that there were 62 years left we approximated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of expenses.