On the balance of probabilities if you own a flat in Drakes Cross you actually own a long leasehold interest over your property
Leasehold properties in Drakes Cross with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Drakes Cross,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Drakes Cross valuers.
Last Autumn Connor, came seriously close to the 80-year threshold with the lease on his leasehold flat in Drakes Cross. In buying his home 19 years previously, the unexpired term was of little interest. by good luck, he became aware that he would soon be paying an escalated premium for Extending the lease. Connor arranged for a lease extension at the eleventh hour in June. Connor and the landlord in the end settled on a premium of £5,000 . If he failed to meet the deadline, the premium would have increased by a minimum £975.
In 2009 we were e-mailed by Mr and Mrs. G Scott who, having completed a one bedroom apartment in Drakes Cross in July 2008. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Comparable residencies in Drakes Cross with an extended lease were worth £181,200. The mid-range ground rent payable was £65 collected yearly. The lease ran out in 2082. Taking into account 56 years outstanding we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus legals.
In 2013 we were e-mailed by Mr and Mrs. C Clark who, having completed a recently refurbished flat in Drakes Cross in March 1998. The question was if we could estimate the price would likely be to prolong the lease by ninety years. Similar homes in Drakes Cross with 100 year plus lease were in the region of £242,600. The mid-range amount of ground rent was £45 billed per annum. The lease expiry date was in 2093. Given that there were 67 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 plus fees.