The closer a residential lease in Disley nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending sooner than later. Many flat owners in Disley will qualify for this right; however a lawyer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Disley with more than one hundred years remaining on the lease are sometimes 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging our service gives you enhanced control over the value of your Disley leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Jackson, came seriously near to the 80-year threshold with the lease on his garden flat in Disley. Having purchased his home twenty years previously, the lease term was of minimal concern. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Jackson arranged for a lease extension just under the wire in August. Jackson and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If he not met the deadline, the sum would have become more costly by a minimum £925.
Mrs H Ricardo completed a one bedroom apartment in Disley in June 2012. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparative flats in Disley with a long lease were worth £184,000. The average ground rent payable was £55 collected every twelve months. The lease finished in 2077. Having 53 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.
Dr U Cook purchased a purpose-built apartment in Disley in February 1995. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparable residencies in Disley with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 invoiced quarterly. The lease ran out on 13 November 2097. Having 73 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.