Duffield leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have 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 mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some cases you may not be entitled. There are also strict timetables and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Skipton Building Society |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
James was the the leasehold proprietor of a high value flat in Duffield being marketed with a lease of fraction over 61 years remaining. James on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were James to exercise his statutory right. James procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Mr A Jackson purchased a first floor apartment in Duffield in August 2006. The dilemma was if we could estimate the price would likely be to extend the lease by ninety years. Comparative homes in Duffield with an extended lease were valued around £267,600. The average amount of ground rent was £65 billed yearly. The lease came to a finish in 2093. Given that there were 67 years left we estimated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 plus costs.
Mr and Mrs. K Wood bought a one bedroom flat in Duffield in July 2007. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable homes in Duffield with 100 year plus lease were valued around £206,200. The average ground rent payable was £55 collected annually. The lease concluded on 17 August 2082. Given that there were 56 years outstanding we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including expenses.