When it comes to domestic leasehold property in Dunholme, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Leasehold owners in Dunholme with a lease approaching 81 years remaining should seriously think of extending it without delay. Once the lease term has below 80 years left, under the relevant statute the landlord is entitled to calculate and charge a larger amount, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Dunholme,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dunholme valuers.
Eliot was the the leasehold proprietor of a 2 bedroom apartment in Dunholme on the market with a lease of a little over 59 years left. Eliot informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Eliot to exercise his statutory right. Eliot procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Last Christmas we were e-mailed by Dr G Murphy , who purchased a first floor flat in Dunholme in February 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Dunholme with a long lease were in the region of £174,200. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2076. Having 51 years outstanding we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of expenses.
Last month we were called by Mr N Miller , who took over the lease of a basement flat in Dunholme in September 2001. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Dunholme with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 billed annually. The lease ran out in 2096. Taking into account 71 years as a residual term we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.