Duxford leases on residential properties are gradually losing value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Duxford will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some circumstances you may not be entitled. There are also strict timetables and procedures to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Duxford leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year William, started to get near to the eighty-year mark with the lease on his garden apartment in Duxford. In buying his flat 18 years previously, the lease term was of minimal interest. Fortunately, it dawned on him that he needed to take action soon on a lease extension. William was able to extend his lease at the eleventh hour in June. William and the freeholder via the managing agents in the end agreed on an amount of £6,000 . If he had missed the deadline, the sum would have increased by a minimum £1,100.
In 2011 we were e-mailed by Mr and Mrs. D Roberts who, having bought a garden apartment in Duxford in May 2008. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable homes in Duxford with an extended lease were in the region of £218,000. The average amount of ground rent was £45 collected every twelve months. The lease ran out on 24 November 2089. Considering the 63 years unexpired we estimated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 not including expenses.
In 2014 we were e-mailed by Mr J Brooks who, having was assigned a lease of a purpose-built flat in Duxford in April 1999. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative residencies in Duxford with a long lease were in the region of £265,000. The mid-range ground rent payable was £50 billed yearly. The lease concluded in 2099. Considering the 73 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.