The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Downham may extend the lease for a further ninety years under Leasehold Reform legislation. Do give careful consideration before delaying your Downham lease extension. Shelving that expense now simply increases the amount you will ultimately have to pay to extend the lease.
Leasehold premises in Downham with more than 100 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 upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 Downham can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 Downham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy discussions with the freeholder of her ground floor flat in Downham, Courtney started the lease extension process as the eighty year threshold was fast coming. The lease extension completed in April 2011. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. J Watson acquired a ground floor apartment in Downham in January 1998. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Downham with 100 year plus lease were valued around £240,600. The mid-range ground rent payable was £60 billed quarterly. The lease ran out on 13 January 2087. Taking into account 62 years left we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of expenses.
An example of a Freehold Enfranchisement case for a Downham flat is Ravensbourne Lodge 4 Highland Road in February 2013. the Tribunal held that the amount payable for the freehold was £22,268