Drakes Cross leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Drakes Cross will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some situations you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Drakes Cross can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 procuring 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.
Off the back of lengthy discussions with the landlord of her basement apartment in Drakes Cross, Samantha commenced the lease extension process as the 80 year mark was rapidly advancing. The lease extension was concluded in April 2013. The landlord’s costs were restricted to below 550 GBP.
Mr T David moved into a one bedroom apartment in Drakes Cross in May 2002. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Comparable properties in Drakes Cross with an extended lease were valued about £246,800. The mid-range ground rent payable was £60 collected quarterly. The lease concluded in 2075. Considering the 50 years left we approximated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 plus expenses.
In 2010 we were contacted by Mr Henry Sharif who, having owned a ground floor flat in Drakes Cross in March 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable flats in Drakes Cross with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected annually. The lease ran out in 2085. Having 60 years remaining we estimated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of expenses.