Droitwich Spa leases on residential properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Droitwich Spa will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some situations you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Droitwich Spa with in excess of 100 years remaining 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Droitwich Spa can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 Droitwich Spa lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Lucas, started to get close to the eighty-year mark with the lease on his first floor flat in Droitwich Spa. In buying his home twenty years ago, the lease term was of little relevance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Lucas was able to extend his lease just under the wire in June. Lucas and the freeholder via the management company eventually settled on a premium of £5,000 . If the lease had dropped lower than 80 years, the premium would have escalated by a minimum £1,050.
Last September we were called by Mr J Davies , who purchased a purpose-built flat in Droitwich Spa in January 1997. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical properties in Droitwich Spa with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £55 invoiced yearly. The lease ran out in 2103. Having 78 years remaining we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.
Dr S Taylor completed a recently refurbished apartment in Droitwich Spa in November 2012. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable premises in Droitwich Spa with 100 year plus lease were valued around £191,000. The mid-range amount of ground rent was £65 collected monthly. The lease elapsed on 10 March 2083. Having 58 years left we calculated the premium to the landlord for the lease extension to be between £23,800 and £27,400 plus fees.