Drakes Cross leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease falls lower than 80 years - otherwise a higher amount will be due. Flat owners in Drakes Cross will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some situations you may not qualify. There are prescribed deadlines and formalities to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Drakes Cross can be a difficult process. We recommend you procure professional help from a lawyer 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 Drakes Cross lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Evan was the the leasehold owner of a 2 bedroom flat in Drakes Cross being marketed with a lease of just over sixty years left. Evan on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Evan to invoke his statutory right. Evan obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the property.
In 2011 we were called by Dr James Ramírez who, having moved into a one bedroom flat in Drakes Cross in November 1995. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar flats in Drakes Cross with 100 year plus lease were worth £280,000. The average ground rent payable was £55 collected per annum. The lease end date was on 26 October 2103. Having 78 years remaining we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.
Dr Sian Hernández bought a ground floor apartment in Drakes Cross in March 1995. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical flats in Drakes Cross with 100 year plus lease were worth £186,000. The average amount of ground rent was £65 invoiced quarterly. The lease terminated on 19 March 2083. Taking into account 58 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 plus fees.