The nearer a domestic lease in Disley nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 100 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner than later. Many flat owners in Disley will meet the qualifying criteria; nevertheless 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.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Disley,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Disley valuers.
Aaron was the the leasehold owner of a high value apartment in Disley on the market with a lease of just over fifty eight years remaining. Aaron on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be due on a lease extension were Aaron to invoke his statutory right. Aaron obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Ms V Roberts acquired a garden apartment in Disley in March 2009. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Similar properties in Disley with a long lease were in the region of £191,400. The mid-range ground rent payable was £55 collected per annum. The lease expired in 2079. Having 54 years remaining we estimated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 not including fees.
Last Spring we were approach by Dr Thomas Rose , who bought a one bedroom apartment in Disley in February 2002. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Disley with an extended lease were valued about £295,000. The mid-range amount of ground rent was £45 collected per annum. The lease expired on 7 May 2099. Considering the 74 years unexpired we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.