Drakes Cross leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Drakes Cross will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and procedures to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Drakes Cross with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 obtain guidance from a lawyer 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 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.
Jason was the the leasehold owner of a high value flat in Drakes Cross on the market with a lease of just over 59 years unexpired. Jason informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jason to exercise his statutory right. Jason procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last January we were called by Ms Y González , who completed a basement flat in Drakes Cross in April 2002. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Drakes Cross with a long lease were valued about £235,200. The mid-range amount of ground rent was £45 invoiced yearly. The lease expired in 2091. Given that there were 66 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.
In 2012 we were approached by Mr and Mrs. R Williams who, having took over the lease of a one bedroom flat in Drakes Cross in April 1997. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparable residencies in Drakes Cross with an extended lease were worth £275,000. The average amount of ground rent was £55 invoiced per annum. The lease concluded on 9 April 2101. Having 76 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.