Duffield residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
Leasehold properties in Duffield with over 100 years left 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better 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 conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Harrison owned a 2 bedroom flat in Duffield on the market with a lease of a little over sixty years left. Harrison on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Winter we were called by Dr O Bell , who was assigned a lease of a ground floor flat in Duffield in September 2007. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Identical properties in Duffield with a long lease were valued about £300,000. The average amount of ground rent was £50 collected every twelve months. The lease concluded in 2101. Having 76 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.
Mr and Mrs. A Flores took over the lease of a one bedroom apartment in Duffield in April 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar properties in Duffield with 100 year plus lease were worth £257,800. The average amount of ground rent was £65 billed annually. The lease finished in 2090. Having 65 years remaining we approximated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 plus expenses.