Duffield leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Duffield will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain cases you may not be entitled. There are prescribed timetables and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you increased control over the value of your Duffield leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Adam, came very close to the 80-year threshold with the lease on his two bedroom apartment in Duffield. In buying his property 19 years previously, the lease term was of little relevance. Luckily, he noticed he would soon be paying an escalated premium for a lease extension. Adam was able to extend his lease at the eleventh hour last March. Adam and the freeholder ultimately agreed on a premium of £5,000 . If the lease had slipped lower than eighty years, the price would have become more costly by a minimum £1,125.
Mr and Mrs. G Ali acquired a one bedroom apartment in Duffield in May 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Similar homes in Duffield with an extended lease were valued around £208,600. The mid-range ground rent payable was £60 collected yearly. The lease ended on 2 July 2082. Having 57 years remaining we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including expenses.
Mr Max Collins took over the lease of a newly refurbished apartment in Duffield in November 2001. We are asked if we could approximate the premium would be to extend the lease by 90 years. Identical premises in Duffield with a long lease were in the region of £200,000. The average ground rent payable was £50 billed per annum. The lease terminated in 2102. Given that there were 77 years left we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.