When it comes to domestic leasehold premises in Dronfield, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than 80 years remaining. Residents in Dronfield with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has less than eighty years remaining, under the relevant statute the landlord is entitled to calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Dronfield with more than one hundred years unexpired 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 purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Dronfield,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dronfield valuers.
Dylan was the the leasehold proprietor of a high value flat in Dronfield on the market with a lease of a few days over sixty years left. Dylan on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Dylan to invoke his statutory right. Dylan procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2013 we were phoned by Mr and Mrs. J Campbell who, having bought a studio apartment in Dronfield in February 2004. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparable premises in Dronfield with 100 year plus lease were worth £280,000. The average amount of ground rent was £45 invoiced quarterly. The lease ran out in 2095. Given that there were 70 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.
Dr U Scott owned a one bedroom flat in Dronfield in January 2007. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable properties in Dronfield with an extended lease were in the region of £223,400. The average amount of ground rent was £60 invoiced annually. The lease came to a finish on 20 June 2084. Considering the 59 years unexpired we calculated the premium to the landlord for the lease extension to be between £27,600 and £31,800 plus professional charges.