When it comes to long leasehold premises in Disley, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years left. Leasehold owners in Disley with a lease approaching 81 years unexpired should seriously think of extending it without delay. When the lease term has under eighty years remaining, under the relevant statute the landlord is entitled to calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Disley with over 100 years remaining on the lease are often 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 justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancers that we work with undertake Disley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
14 months ago Milo, came perilously close to the eighty-year mark with the lease on his ground floor flat in Disley. Having bought his home twenty years previously, the lease term was of little concern. Thankfully, he realised he needed to take steps soon on Extending the lease. Milo extended the lease at the eleventh hour last September. Milo and the freeholder subsequently settled on sum of £5,000 . If the lease had slid below 80 years, the sum would have gone up by a minimum £1,000.
Mr and Mrs. R Walker bought a newly refurbished apartment in Disley in October 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparative properties in Disley with an extended lease were valued around £166,800. The mid-range ground rent payable was £50 invoiced every twelve months. The lease came to a finish on 25 August 2075. Considering the 50 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of expenses.
In 2010 we were phoned by Ms Hollie Ricardo who, having completed a ground floor apartment in Disley in February 1996. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparative flats in Disley with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 billed quarterly. The lease terminated in 2095. Taking into account 70 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.