Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Downton. Clearly, the length of lease left shortens over time. This is often overlooked and only becomes a problem when the flat or house has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Downton have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Please give careful deliberation before putting off your Downton lease extension. Holding off the cost now only increases the price you will eventually incur to extend your lease
Leasehold residencies in Downton with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Downton can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
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 a wealth of experience dealing with Downton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Archie owned a studio apartment in Downton being marketed with a lease of just over fifty eight years left. Archie informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be due on a lease extension were Archie to exercise his statutory right. Archie procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Mr and Mrs. K Wilson was assigned a lease of a recently refurbished flat in Downton in April 2006. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable properties in Downton with a long lease were in the region of £218,000. The average ground rent payable was £45 collected monthly. The lease ran out on 13 June 2089. Having 63 years remaining we approximated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of legals.
In 2011 we were contacted by Dr Logan Leroy who, having completed a first floor flat in Downton in January 2011. We are asked if we could estimate the price would likely be for a ninety year lease extension. Similar residencies in Downton with 100 year plus lease were valued around £265,000. The mid-range ground rent payable was £50 collected per annum. The lease elapsed in 2100. Considering the 74 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.