Duffield leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the current lease dips under 80 years - otherwise a higher amount will be due. Leasehold owners in Duffield will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Duffield with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancers that we work with handle Duffield 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 lawyer we work with provide it.
After protracted discussions with the landlord of her ground floor apartment in Duffield, Caitlin initiated the lease extension process just as the lease was approaching the critical 80-year deadline. The transaction completed in September 2005. The freeholder’s charges were restricted to below 450 GBP.
In 2012 we were contacted by Dr Emma Roberts who, having completed a basement apartment in Duffield in November 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Duffield with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced annually. The lease elapsed on 26 May 2100. Considering the 74 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
In 2010 we were contacted by Ms Sophie Jones who, having was assigned a lease of a first floor flat in Duffield in August 2011. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Identical flats in Duffield with 100 year plus lease were valued about £243,000. The average ground rent payable was £65 billed quarterly. The lease finished in 2089. Taking into account 63 years unexpired we calculated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including costs.