With a domestic leasehold premises in Darley Abbey, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Anyone in Darley Abbey with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has fewer than 80 years remaining, under the current statute the freeholder is entitled to calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Darley Abbey,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 in-depth market knowledge and the close ties they enjoy with Darley Abbey valuers.
In recent months Lucas, started to get near to the eighty-year mark with the lease on his basement apartment in Darley Abbey. Having purchased his home twenty years ago, the length of the lease was of minimal significance. Thankfully, he realised he would soon be paying an inflated amount for Extending the lease. Lucas extended the lease just in the nick of time last April. Lucas and the freeholder eventually agreed on the final figure of £5,500 . If he had missed the deadline, the sum would have become more costly by a minimum £1,100.
Last August we were approach by Mr Harrison Cooper , who completed a recently refurbished flat in Darley Abbey in June 2004. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Identical properties in Darley Abbey with a long lease were worth £280,000. The mid-range amount of ground rent was £45 collected per annum. The lease finished in 2095. Having 70 years left we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.
Last Summer we were e-mailed by Dr T Garcia , who acquired a one bedroom flat in Darley Abbey in June 2011. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable homes in Darley Abbey with an extended lease were in the region of £223,400. The mid-range amount of ground rent was £60 collected yearly. The lease ran out in 2084. Considering the 59 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of fees.