Disley leases on domestic properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease dips under eighty years - otherwise a higher premium will be payable. Leasehold owners in Disley will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Disley with over 100 years unexpired on the lease are often regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and service 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Disley leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Andrew, started to get close to the eighty-year mark with the lease on his ground floor apartment in Disley. In buying his home twenty years ago, the length of the lease was of little importance. Fortunately, he noticed he needed to take steps soon on a lease extension. Andrew extended the lease just ahead of time in March. Andrew and the freeholder via the management company eventually settled on the final figure of £5,500 . If he not met the deadline, the price would have become more exhorbitant by at least £1,125.
Last Spring we were phoned by Dr P López , who bought a first floor apartment in Disley in May 2000. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable premises in Disley with an extended lease were worth £285,000. The average ground rent payable was £45 billed yearly. The lease finished on 22 July 2098. Considering the 72 years outstanding we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
Ms S Brooks moved into a garden flat in Disley in February 2000. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar homes in Disley with a long lease were in the region of £233,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease came to a finish in 2087. Given that there were 61 years unexpired we estimated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including legals.