It’s an underpublicised certainty that a Duston residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Duston property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be payable. Most leasehold owners in Duston will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Duston,the lease extension lawyers 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 Duston valuers.
After lengthy correspondence with the landlord of her garden apartment in Duston, Leah commenced the lease extension process as the 80 year deadline was quickly advancing. The transaction was finalised in January 2008. The freeholder’s costs were kept to an absolute minimum.
Last year we were called by Mr and Mrs. V Gómez , who was assigned a lease of a basement flat in Duston in May 2010. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Similar premises in Duston with a long lease were worth £233,200. The average amount of ground rent was £60 invoiced yearly. The lease concluded in 2086. Having 61 years unexpired we estimated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 not including professional charges.
Mr and Mrs. H Watson was assigned a lease of a ground floor apartment in Duston in May 2006. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Duston with a long lease were worth £171,800. The mid-range ground rent payable was £55 collected yearly. The lease elapsed on 16 March 2075. Having 50 years outstanding we approximated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of expenses.