The market value of a leasehold property in Didsbury is impacted by how long the lease has left to run. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed ahead of the 80 year threshold. Statute entitles Didsbury qualifying lessees to an additional term of ninety years on top of the remaining term, at a notional rent (no ground rent). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Didsbury with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Didsbury,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Didsbury valuers.
Last year Jake, came perilously close to the eighty-year mark with the lease on his studio apartment in Didsbury. Having bought his property two decades ago, the length of the lease was of little interest. Fortunately, he noticed he would soon be paying way over the odds for a lease extension. Jake extended the lease just under the wire last August. Jake and the freeholder via the managing agents subsequently settled on the final figure of £5,500 . If he not met the deadline, the sum would have escalated by at least £1,000.
Mr and Mrs. V Brown moved into a garden apartment in Didsbury in March 1996. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical homes in Didsbury with 100 year plus lease were valued about £300,000. The mid-range ground rent payable was £50 billed monthly. The lease ran out on 10 July 2101. Given that there were 76 years unexpired we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.
In 2009 we were e-mailed by Mr Callum López who, having moved into a first floor apartment in Didsbury in July 2001. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Similar premises in Didsbury with a long lease were worth £257,800. The mid-range amount of ground rent was £65 billed quarterly. The lease terminated in 2090. Having 65 years remaining we approximated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus legals.