The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Duxford may extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Duxford lease extension. Postponing that expense now simply escalates the price you will eventually be required to pay to extend the lease.
Leasehold residencies in Duxford with in excess of 100 years unexpired on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Duxford can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor 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 in-depth market knowledge 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.
After protracted negotiations with the freeholder of her two bedroom flat in Duxford, Abbie started the lease extension process as the 80 year deadline was swiftly advancing. The lease extension was concluded in October 2008. The freeholder’s fees were negotiated to a tad over 650 pounds.
Mr P Dupont was assigned a lease of a basement flat in Duxford in September 2004. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical properties in Duxford with a long lease were in the region of £249,200. The mid-range amount of ground rent was £60 invoiced per annum. The lease end date was on 14 January 2077. Given that there were 51 years outstanding we approximated the premium to the landlord for the lease extension to be between £42,800 and £49,400 plus legals.
Last month we were approach by Mr and Mrs. V Mercier , who owned a garden flat in Duxford in November 2001. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparative properties in Duxford with a long lease were worth £208,200. The mid-range amount of ground rent was £65 collected yearly. The lease concluded on 26 November 2087. Considering the 61 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 not including professional charges.