With a long leasehold premises in Dalton in Furness, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are less than 80 years left. Anyone in Dalton in Furness with a lease drawing near to 81 years left should seriously think of extending it without delay. When a lease has below 80 years left, under the current legislation the freeholder can calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Dalton in Furness,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dalton in Furness valuers.
Nathaniel was the the leasehold proprietor of a 2 bedroom flat in Dalton in Furness on the market with a lease of a little over fifty eight years unexpired. Nathaniel on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last Christmas we were contacted by Mr Jonathan Thompson , who acquired a purpose-built flat in Dalton in Furness in February 2012. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar flats in Dalton in Furness with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease ran out on 13 April 2101. Having 76 years unexpired we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.
Dr Nathaniel Howard bought a newly refurbished apartment in Dalton in Furness in October 1998. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar premises in Dalton in Furness with an extended lease were valued about £257,800. The average amount of ground rent was £65 billed annually. The lease concluded on 28 March 2090. Taking into account 65 years outstanding we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus professional charges.