With a long leasehold premises in Disley, 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 think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than 80 years remaining. Anyone in Disley with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When a lease has under 80 years outstanding, under the relevant statute the landlord can calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Disley with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Disley can be a difficult process. We recommend you get professional help from a conveyancer and surveyor 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 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.
After protracted discussions with the landlord of her two bedroom flat in Disley, Kayleigh commenced the lease extension process as the eighty year mark was swiftly advancing. The legal work completed in April 2010. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were e-mailed by Mr and Mrs. Y Robinson who, having completed a studio apartment in Disley in July 2009. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical homes in Disley with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 billed monthly. The lease expired in 2102. Taking into account 76 years as a residual term we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.
In 2012 we were phoned by Mr and Mrs. H Mitchell who, having completed a one bedroom flat in Disley in April 2005. The question was if we could estimate the premium could be to prolong the lease by ninety years. Similar homes in Disley with a long lease were in the region of £257,800. The average amount of ground rent was £65 billed yearly. The lease end date was on 6 April 2091. Given that there were 65 years remaining we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 not including expenses.