When it comes to domestic leasehold property in Downton, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than 80 years left. Leasehold owners in Downton with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. When a lease has less than 80 years outstanding, under the current Act the freeholder is entitled to calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Downton with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service 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. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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.
Following protracted negotiations with the landlord of her studio apartment in Downton, Emily commenced the lease extension process as the 80 year threshold was quickly nearing. The lease extension was finalised in April 2013. The freeholder’s charges were negotiated to a tad over 600 pounds.
In 2012 we were contacted by Mr Dylan Cox who, having took over the lease of a recently refurbished flat in Downton in January 2009. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable homes in Downton with a long lease were worth £265,000. The mid-range amount of ground rent was £50 collected quarterly. The lease ran out in 2099. Taking into account 73 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
Last month we were e-mailed by Mr U Mercier , who acquired a studio flat in Downton in April 1999. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Identical homes in Downton with 100 year plus lease were worth £264,000. The average amount of ground rent was £60 billed monthly. The lease expiry date was in 2079. Considering the 53 years remaining we calculated the premium to the landlord for the lease extension to be within £37,100 and £42,800 plus expenses.