When it comes to long leasehold premises in Duxford, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Residents in Duxford with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. When a lease has under eighty years left, under the current Act the freeholder is entitled to calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service will provide you increased control over the value of your Duxford leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Tommy owned a high value flat in Duxford being marketed with a lease of a few days over fifty eight years unexpired. Tommy on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Tommy to exercise his statutory right. Tommy procured expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
Last year we were e-mailed by Dr Adam Cook , who acquired a garden apartment in Duxford in April 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Duxford with an extended lease were valued about £250,000. The average ground rent payable was £50 collected per annum. The lease finished in 2095. Given that there were 69 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Dr Anna Laurent moved into a basement flat in Duxford in August 2003. We are asked if we could estimate the price would be to prolong the lease by 90 years. Identical homes in Duxford with 100 year plus lease were worth £290,000. The average amount of ground rent was £60 billed quarterly. The lease elapsed on 8 April 2106. Considering the 80 years unexpired we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.