The re-sale value of a leasehold property in Dalton in Furness is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be addressed ahead of the 80 year cut off point. Statute enables Dalton in Furness qualifying lessees to an additional term of ninety years on top of the existing term, at a nominal rent (no ground rent). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 will provide you better control over the value of your Dalton in Furness leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jamie owned a high value apartment in Dalton in Furness on the market with a lease of just over fifty eight years left. Jamie on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jamie to exercise his statutory right. Jamie obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2014 we were phoned by Dr Aaron Young who, having owned a one bedroom apartment in Dalton in Furness in October 1998. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar residencies in Dalton in Furness with 100 year plus lease were in the region of £171,800. The mid-range amount of ground rent was £55 billed every twelve months. The lease elapsed in 2074. Having 50 years remaining we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 not including professional charges.
Mr and Mrs. S Brooks owned a purpose-built apartment in Dalton in Furness in November 2007. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Identical homes in Dalton in Furness with an extended lease were valued around £280,000. The average ground rent payable was £45 collected every twelve months. The lease terminated in 2094. Having 70 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.