Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Driffield. Inevitably, the length of lease left reduces as time goes by. This may pass by relatively unnoticed when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Driffield have the legal entitlement to extend the lease for a further 90 years under legislation. Please give due attention before putting off your Driffield lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
Leasehold residencies in Driffield with in excess of one hundred years remaining 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Driffield can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in this area.
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 Driffield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Teddy, came precariously near to the 80-year threshold with the lease on his leasehold apartment in Driffield. In buying his flat two decades ago, the unexpired term was of no importance. Fortunately, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Teddy extended the lease at the eleventh hour in July. Teddy and the landlord who owned the flat above eventually agreed on sum of £5,500 . If the lease had slipped lower than 80 years, the sum would have increased by a minimum £1,125.
Mr and Mrs. S Peterson took over the lease of a purpose-built apartment in Driffield in April 2006. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar flats in Driffield with an extended lease were in the region of £168,800. The average amount of ground rent was £60 collected yearly. The lease ran out in 2081. Considering the 55 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of expenses.
In 2010 we were called by Ms Tia Peterson who, having purchased a ground floor apartment in Driffield in April 2008. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical properties in Driffield with 100 year plus lease were valued around £235,200. The average ground rent payable was £45 invoiced yearly. The lease end date was on 25 April 2092. Taking into account 66 years outstanding we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.