Chances are that where you own a flat in Duxford you actually own a long leasehold interest over your property
Leasehold properties in Duxford with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Duxford can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Duxford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Harvey, came critically close to the 80-year mark with the lease on his basement flat in Duxford. In buying his property two decades ago, the length of the lease was of no relevance. As luck would have it, he noticed he would imminently be paying an inflated amount for a lease extension. Harvey was able to extend his lease just in the nick of time last September. Harvey and the landlord who owned the flat above in the end settled on an amount of £5,000 . If the lease had descended lower than eighty years, the sum would have escalated by at least £900.
In 2009 we were e-mailed by Mr and Mrs. U Rivera who, having acquired a basement apartment in Duxford in September 2009. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar residencies in Duxford with a long lease were valued about £260,000. The average ground rent payable was £50 billed every twelve months. The lease lapsed on 7 November 2097. Taking into account 72 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
In 2009 we were phoned by Mr and Mrs. I Bennett who, having acquired a newly refurbished flat in Duxford in February 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Similar residencies in Duxford with 100 year plus lease were valued around £256,600. The mid-range ground rent payable was £60 collected every twelve months. The lease elapsed in 2077. Considering the 52 years left we calculated the compensation to the landlord for the lease extension to be between £41,800 and £48,400 not including legals.