Disley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Disley enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Disley you must check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Disley flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is put in place without delay
Leasehold properties in Disley with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Disley can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 a wealth of experience dealing with Disley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dylan owned a high value flat in Disley on the market with a lease of a little over 61 years left. Dylan informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Dylan to invoke his statutory right. Dylan obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the property.
In 2013 we were phoned by Dr T Michel who, having completed a studio apartment in Disley in October 1998. The dilemma was if we could estimate the price would be for a ninety year lease extension. Identical flats in Disley with 100 year plus lease were in the region of £275,000. The average ground rent payable was £45 collected monthly. The lease termination date was on 5 June 2095. Taking into account 69 years outstanding we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.
In 2014 we were called by Mr and Mrs. K Torres who, having owned a purpose-built apartment in Disley in March 2001. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Identical premises in Disley with 100 year plus lease were worth £216,000. The average ground rent payable was £60 billed every twelve months. The lease lapsed on 24 June 2084. Having 58 years remaining we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.