The closer a residential lease in Derby gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 100 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner than later. The majority of flat owners in Derby will meet the qualifying criteria; that being said a lawyer should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Derby with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Derby,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Derby valuers.
In recent months Nathan, started to get near to the 80-year threshold with the lease on his basement apartment in Derby. In buying his property two decades ago, the lease term was of little concern. Fortunately, he recognised he would soon be paying an escalated premium for a lease extension. Nathan arranged for a lease extension just under the wire last September. Nathan and the freeholder via the managing agents subsequently settled on sum of £6,000 . If the lease had dipped to less than eighty years, the price would have become more costly by a minimum £900.
Dr Finn Stewart completed a recently refurbished apartment in Derby in August 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in Derby with an extended lease were valued around £275,000. The average ground rent payable was £55 collected per annum. The lease came to a finish on 13 January 2101. Having 76 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.
In 2010 we were approached by Dr O Mitchell who, having completed a one bedroom flat in Derby in March 2009. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar premises in Derby with a long lease were valued about £181,200. The average amount of ground rent was £65 invoiced yearly. The lease terminated on 1 March 2081. Having 56 years remaining we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of legals.