The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Duston have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Duston lease extension. Putting off that expense today simply increases the price you will eventually have to pay to extend the lease.
Leasehold premises in Duston with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Using our service gives you better control over the value of your Duston leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the freeholder of her one bedroom apartment in Duston, Stephanie initiated the lease extension process as the 80 year threshold was fast advancing. The lease extension completed in March 2014. The landlord’s costs were negotiated to approximately 650 GBP.
Mr Samuel Martinez bought a one bedroom flat in Duston in October 2006. We are asked if we could estimate the premium would be to extend the lease by an additional years. Identical residencies in Duston with an extended lease were worth £290,000. The mid-range ground rent payable was £45 invoiced per annum. The lease ended in 2099. Taking into account 73 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
Last Christmas we were contacted by Mr and Mrs. I Williams , who purchased a recently refurbished flat in Duston in July 2004. The question was if we could estimate the premium would be to prolong the lease by 90 years. Similar properties in Duston with 100 year plus lease were worth £240,600. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish in 2088. Given that there were 62 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus fees.