Chances are that if you own a flat in Driffield you actually own a long leasehold interest over your property
Leasehold properties in Driffield with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Driffield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Ibrahim was the the leasehold owner of a 2 bedroom flat in Driffield being sold with a lease of just over 59 years unexpired. Ibrahim informally contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
Mr J Bailey acquired a first floor flat in Driffield in April 2004. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparative residencies in Driffield with an extended lease were in the region of £285,000. The average ground rent payable was £55 collected every twelve months. The lease came to a finish on 16 September 2105. Taking into account 79 years unexpired we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.
Last August we were contacted by Mr and Mrs. H Morgan , who was assigned a lease of a ground floor apartment in Driffield in March 2004. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Similar premises in Driffield with an extended lease were worth £193,400. The mid-range amount of ground rent was £65 collected annually. The lease lapsed on 25 November 2085. Considering the 59 years unexpired we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including expenses.