Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Dalton in Furness. Clearly, the term of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Eligible leaseholders in Dalton in Furness have the right to extend the lease for an additional ninety years in accordance with legislation. You should give careful consideration before delaying your Dalton in Furness lease extension. Putting off that expense now simply increases the price you will eventually incur to extend your lease
Leasehold residencies in Dalton in Furness with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Dalton in Furness leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Lewis was the the leasehold proprietor of a conversion flat in Dalton in Furness on the market with a lease of fraction over sixty years unexpired. Lewis on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Lewis to exercise his statutory right. Lewis procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
In 2014 we were e-mailed by Ms Daisy Jones who, having bought a first floor flat in Dalton in Furness in June 2010. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative flats in Dalton in Furness with a long lease were worth £174,200. The average ground rent payable was £55 collected annually. The lease expiry date was on 20 August 2076. Considering the 51 years remaining we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including legals.
In 2011 we were approached by Mr Ryan Dupont who, having moved into a one bedroom apartment in Dalton in Furness in April 1995. The question was if we could estimate the price could be to extend the lease by ninety years. Identical properties in Dalton in Furness with 100 year plus lease were valued around £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease terminated on 9 May 2096. Taking into account 71 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.