Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Duston. Inevitably, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Duston have the legal entitlement to extend the lease for a further ninety years in accordance with statute. Do give due consideration before delaying your Duston lease extension. Putting off that expense now likely increases the price you will eventually have to pay for a lease extension
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Regardless of whether you are a tenant or a landlord in Duston,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Duston valuers.
Following protracted negotiations with the landlord of her one bedroom flat in Duston, Sarah commenced the lease extension process just as her lease was approaching the critical eighty-year mark. The transaction was concluded in July 2005. The landlord’s fees were negotiated to less than 550 GBP.
Last month we were approach by Dr Evan Kelly , who was assigned a lease of a first floor flat in Duston in June 2004. The dilemma was if we could approximate the premium could be to extend the lease by a further 90 years. Identical premises in Duston with an extended lease were worth £206,200. The average ground rent payable was £60 invoiced annually. The lease expired on 3 September 2081. Having 56 years unexpired we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of expenses.
Mr and Mrs. M Murphy was assigned a lease of a first floor flat in Duston in July 2012. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Duston with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease concluded on 10 March 2101. Taking into account 76 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.