The closer a residential lease in Downton gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 100 years remaining then this decrease may be negligible however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Downton will qualify for this right; that being said a conveyancer will be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Downton can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor 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 procuring Downton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
David was the the leasehold proprietor of a 2 bedroom flat in Downton on the market with a lease of fraction over sixty years outstanding. David informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were David to exercise his statutory right. David obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
In 2009 we were phoned by Dr D Taylor who, having took over the lease of a ground floor apartment in Downton in March 2009. We are asked if we could approximate the price would be to prolong the lease by 90 years. Similar premises in Downton with a long lease were worth £245,000. The mid-range amount of ground rent was £45 invoiced annually. The lease terminated on 20 October 2094. Considering the 68 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.
Last month we were e-mailed by Mr Joshua Hernández , who owned a garden flat in Downton in September 2005. The question was if we could approximate the price could be to prolong the lease by 90 years. Similar residencies in Downton with an extended lease were worth £285,000. The average ground rent payable was £55 billed every twelve months. The lease terminated in 2105. Having 79 years as a residual term we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of costs.