Durrington leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease dips below 80 years - otherwise a higher premium will be payable. Leasehold owners in Durrington will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not qualify. There are also strict timetables and procedures to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Durrington with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| Halifax | 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Durrington,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 in-depth market knowledge and the close ties they enjoy with Durrington valuers.
Harvey was the the leasehold owner of a studio apartment in Durrington on the market with a lease of just over 61 years outstanding. Harvey informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be due on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Last Christmas we were approach by Mr Omar Williams , who owned a garden apartment in Durrington in April 2010. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable homes in Durrington with 100 year plus lease were in the region of £257,800. The average ground rent payable was £65 invoiced yearly. The lease came to a finish on 17 August 2090. Considering the 65 years remaining we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 not including professional charges.
Mr I Bailey completed a one bedroom flat in Durrington in January 2011. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative flats in Durrington with a long lease were worth £191,400. The mid-range ground rent payable was £55 collected per annum. The lease expired in 2079. Considering the 54 years remaining we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of professional charges.