With a residential leasehold property in Duxford, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider 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 becomes disproportionately greater particularly when there are less than 80 years left. Residents in Duxford with a lease nearing 81 years remaining should seriously think of extending it without delay. Once the lease term has under 80 years remaining, under the current Act the freeholder is entitled to calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining 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 decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Duxford can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Duxford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
James was the the leasehold proprietor of a studio flat in Duxford on the market with a lease of just over 72 years outstanding. James on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were James to exercise his statutory right. James procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Mr and Mrs. W Torres purchased a one bedroom flat in Duxford in October 2004. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Duxford with an extended lease were worth £168,800. The mid-range amount of ground rent was £60 billed per annum. The lease concluded in 2079. Given that there were 55 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.
Ms Yasmin Peterson bought a one bedroom apartment in Duxford in October 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparable residencies in Duxford with 100 year plus lease were worth £235,200. The average ground rent payable was £45 billed quarterly. The lease expired in 2090. Considering the 66 years remaining we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.