There is no doubt about it a leasehold property in Dunholme is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner than later. Most flat owners in Dunholme will qualify for this right; nevertheless a conveyancer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Dunholme,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dunholme valuers.
Daniel owned a studio apartment in Dunholme on the market with a lease of fraction over 59 years outstanding. Daniel informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and was able to make a more informed decision and handle with the matter and sell the property.
Last Autumn we were e-mailed by Ms Melissa Green , who owned a one bedroom flat in Dunholme in April 2011. The question was if we could approximate the premium would likely be for a ninety year lease extension. Similar homes in Dunholme with a long lease were worth £270,000. The mid-range ground rent payable was £65 invoiced per annum. The lease lapsed in 2094. Considering the 68 years left we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
In 2012 we were called by Mrs Ellen Simon who, having moved into a one bedroom flat in Dunholme in November 2011. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative properties in Dunholme with 100 year plus lease were valued about £208,600. The mid-range ground rent payable was £60 invoiced every twelve months. The lease concluded on 27 February 2083. Considering the 57 years remaining we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus legals.